,^ ^.J\>^ ^ ^A' .\^rt': \.
•-^^
Given By
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
HEARINGS
BEFORE THE
SELECT COMMITTEE
ON IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
EIGHTY-FIFTH CONGRESS
FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, 85TH CONGRESS
MARCH 19, 20, 21, AND 22, 1957
PART 4
Printed for the use of the Select Coromittee on Impx-oper Activities In the
Labor or Management Field
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
HEARINGS
BEFORE THE
SELECT COMMITTEE
ON IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
EIGHTY-FIFTH CONGRESS
FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, 85TH CX)NGRESS
MARCH 19, 20, 21, AND 22, 1957
PART 4
Printed for the use of the Select Committee on Improper Activities in the
Labor or Management Field
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1957
Boston Public Library
Superintendent of Documents
MAY 2 8 1957
SELECT COMMITTEE ON IMPROPER ACTIVITIES IN THE LABOR OR
MANAGEMENT FIELD
JOHN L. McCLELLAN, Arkansas, Chairman
IRVING M. IVES, New York, Vice Chairman
JOHN F. KENNEDY, Massachusetts JOSEPH R. MCCARTHY, Wisconsin
SAM J. ERVIN, Je., North Carolina KARL E. MUNDT, South Dakota
PAT McNAMARA, Michigan BARRY GOLDWATER, Arizona
Robert F. Kennedy, Chief Counsel
Ruth Young Watt, Chief Clerk
II
CONTENTS
Area: Seattle, Wash. (Brewster)
Adlerman, Jerome.
Appendix f4^'
Testimony of— "" ^"^^'"^
£>ie\\ bier, frank n 1111 1 1 co iicc 1090
1232, 1249. 1253, 1259, 1272, 1277, 1279," 1282," 1304, 1315, 13.36, 1351, 13?i
bahnger, Pierre E. G 1217 19^18 197-^ i9«n loe^
Sylvester, Howard -V-V-V;_V_V;.V;. _ _ _ .'. I HI
EXHIBITS
Intro-
hibit Xo. duced on Appears
c(i T' -A 1 »• T- page on page
bb. bnited Air Lines air travel card indicating purchased bv
Kita Frasch for Bobbie Eisen from Los Angeles to San
l-rancisco and return to Los Angeles, dated September
_ 17, 19o4, in theamount of $46.09_ _ _ 1116 ioo.>
'"• '-'V^f^ o'^ ^"^^^ ^^^ t^'avel card indicating purchased "bv
.John Sweeney for Bobbie Eisen from San Francisco to
i.os Angeles, to Modesto, and return to San Francisco
PQ TT^?*^,^;V"gH^^ 15, 1955, in the amount of $.55.22 ' 1116 1384
68. Lnited Air Lines air travel card indicating purchased'bv 138
Rita Pi-asch for Bobbie Eisen and Frank Brewster, dated
June 7, 1954 from Los Angeles to San Francisco and re-
1385
*":!™i°T.-^°^ '^P^';^J^^."l*^^J^".^'^"'lt ?f $205.98, and one
13 se-
dated June 15, 1954, for Richard Cavallero from Los
an ,„-'^Jigeles to San Francisco, in the amount of $71.01 1117
69. ^\ estern Conference of Teamsters check No. 7686, payable 1387
to El Rancho Motel, dated September 29, 1954 in the
aniount of $750, signed by Frank W. Brewster and
John J. Sweeney -..___ 1121 nsc
/OA. Expens^ voucher submitted by ferry McNulTy to' West-
ern Conference of Teamsters, covering period Septem-
-nn T- ^~^^' 1^5^' "^ ^'^'^ amount of $60_ _ 1124 1 ■:i«Q
<0B. Expense voucher to Western Conference "oT Teamsters'
submitted by Terry McNulty, covering the period Sep-
-nr^ T^ ^^"i^^er 4-10, 1955, in the amount of $57. _ 1124 r-tQO
/OC. Expense voucher to Western Conference of Team;ter"s7sub-
mitted by Terry McNuity, covering the period August
-nr^ 1^ ^^"'^^Ptember 3, 19oo, m the amount of $53.50 1124 1391
/OD. Expense voucher to Western Conference of TeamsterV
A, '^1.1^9'- oi il*'-- ^^^'-^'"Ity- covering the period
-m? T> ^^'^"^< ^.-^27, 19o.o, in the amount of $29.50 1124 1392
^OE. Room receipts for Terry McNulty_._. """ 1124 r593_
iiA. Western Conference of Teamsters check No. 7616, dated 1394
February 10, 1954, payable to California Jockey Club,
in the amount of .$200 ._ __ ___ ___ _ _ '__ II37
/IB. Western Conference of Teamsters check "No" '7"f 637 dated
April 13, 1954, payable to Hollywood Turf Club, in the
_ amountof$240 ' II37 jor^g
/IC. Western Conference of Teamsters check 'Na^eog,' dated
September 7, 1954, payable to Tanforan Turf Club, in
-,. , the amount of .$75 . _. .. . _ 1137 iqot
HD. Western Conference of Teamsters check No77 7 fsV dated
October 4, 1954, payable to Golden Gate Turf Club, in
the auKJunt of $150 _ 1^37 j^gg
1395
IV CONTENTS
EXHIBITS— Continued
Intro-
duced on Appears
Exhibit No. page on page
71E. Western Conference of Teamsters check No. 7719, dated
October 4, 1954, payable to Golden Gate Fields, in the
amount of $225 1137 1399
71 F. Western Conference of Teamsters check No. 7928, dated
December 1, 1954, payable to Los Angeles Turf Club, in
the amount of $390__*_ 1137 1400
72 A. Western Conference of Teamsters check No. 8148, dated
February 10, 1955, jiavable to Golden Gate Fields, in
the amount of $225___!; _-_ 1138 1401
72B. Western Conference of Teamsters check No. 8152, dated
February 10, 1955, payable to Golden Gate Turf Club,
in the aniount of $150l . 1138 1402
72C. Western Conference of Teamsters check No. 8541, dated
June 16, 1955, payable to Del Mar Turf Club, in the
amount of $180 1 1138 1403
72D. Western Conference of Teamsters check No. 8872, dated
August 25, 1955, payable to California Jockey Club, in
the amount of $200 1138 1404
72E. Western Conference of Teamsters check No. 9129, dated
November 7, 1955, payable to Tanforan Turf Club, in
the amount of $75 "_ 1138 1405
72F. Western Conference of Teairsters check No. 9213, dated
DeceUiber 8, 1955, payable to Los Angeles Turf Club,
in the amount of $560"_ 1138 1406
73. Teamsters and Auto Truck Drivers Union, Local 174,
check No. 12217, dated February 27, 1951, payable to
Local 174— Special fund, in the amount of $4,000 1140 1407
74. Seattle First National Bank cashier's check No. 308, pay-
able to Palm Deserts Properties, dated February 27,
1951, in the amount of $4,000 I 1143 1408
75. Application for cashier's check, dated February 27, 1951,
signed by C. O'Reilly, on Seattle First National Bank,
payable to Pakn Deserts Properties, in the amount of
$4;000 1144 1409
76. Letter dated May 7, 1956, to the Desert Braemar, Inc.,
Palm Springs, Calif., Attention Mr. Starr Brown,
sales director, from John J. Sweeney, secretary-treasurer
Western Conference of Team sters 1167 1410
77. Letter dated May 3, 1956, to Western Conference of
Teamsters, Attention John J. Sweeney, secretary-
treasurer, from Starr Brown, sales director. The
Desert Braemar, Inc 1168 1411
78. Western Conference of Teamsters check No. 7122, dated
May 1954, payable to Thunderbird Ranch and Country
Club, in the amount of $400 1171 1412
79. Western Conference of Teamsters check No. 7415, dated
June 22, 1954, payable to N. Santarelli, in the amount
of $400 1 1172 1413
80. Western Conference of Teamsters check No. 8059, dated
January 10, 1955, payable to N. V. Santarelli, in the
amount of $546 1176 1414
81. Western Conference of Teamsters check No. 8093, dated
January 18, 1955, payable to Littler, in the amount of
$3,956.41 signed by F. W. Brewster and John Sweeney. 1181 1415
82A. Merchandise order No. 63, on Littler, dated December 20,
1954, endorsed Frank Brewster, in the amount of $20.60_ 1182 1416
82B. Merchandise order No. 69, on Littler, dated December 20,
1954, endorsed Frank Brewster, in the atnount of $20.60_ 1 182 1417
82C. Merchandise order No. 71, on Littler, dated December 20,
1954, endorsed Frank Brewster, in the amount of $20.60 1182 1418
82D. Merchandise order No. 72, on Littler, dated December 20,
1954, endorsed Frank Brewster, in the amount of $20.60^ 1182 1419
82E. Merchandise order No. 73, on Littler, dated December 20,
1954, endorsed Frank Brewster, in the amount of $20.60_ 1182 1420
'• ^ ■•^«S' f-^,^ CONTENTS '^ V
EXHIBITS— Continued
Intro-
duced on Apiirais
Exhibit No. page on paso
82F. Merchandise order No. 78, on Littler, dated December 20,
1954, endorsed Frank Brewster, in the amonnt of $20.00- 1182 1421
82G. Merchandise order No. 203, on Littler, dated December 21
1954, endorsed Frank Brewster, in the amount of $51.50- 1182 1422
82H. Merchandise order No. 222, on Littler, dated December 21,
1954, endorsed Bettv J. Brewster, in the amount of
$154.50 - 1182 1423
83 A. Merchandise order No. 81, on Littler, dated December 20,
1954, gift of Western Conference of Teamsters, in the
amount of $25.75 1183 1424
83B. Merchandise order No. 223, on Littler, dated December 21,
1954, gift of Western Conference of Teamsters, in the
amount of $154.50 1183 1425
84A. Merchandise order No. 86, on Littler, dated December 20,
1954, gift of Western Conference of Teamsters, in the
amount of $25.75 1184 1426
84B. Merchandise order No. 84, on Littler, dated December 20,
1954, gift of Western Conference of Teamsters, in the
amount of $25.75 1184 1427
84C. Merchandise order No. 90, on Littler, dated December 20,
1954, gift of Western Conference of Teamsters, in the
amount of $30.90 1184 1428
84D. Merchandise order No. 91, on Littler, dated December 20,
1954, gift of Western Conference of Teamsters, in the
amount of $30.90 1184 1429
84E. Merchandise order No. 96, on Littler, dated December 20,
1954, gift of Western Conference of Teamsters, in the
amount of $51.50 1184 1430
85A. Merchandise order No. 207, on Littler, dated December 21,
1954, gift of Western Conference of Teamsters, in the
amount of $51.50 1184 1431
85B. Merchandise order No. 211, on Littler, dated December 21,
1954, gift of Western Conference of Teamsters, in the
amount of $41.20 1184 1432
86. Western Conference of Teamsters check No. 7728, dated
October 12, 1954, payable to Charles Tait, signed by
F. W. Brewster and John J. Sweeney, in the amount of
$2,000 '_ 1192 1433
87. Invoice from Conrad, Bruce & Co., to Frank W. Brewster,
dated December 24, 1952, 1.000 shares Affiliated Fund,
Ind., at $5.36, total amount of $5,360 1211 1434
88. Invoice of Blanchett, Hinton & Jones, Inc., to George
Newell, transfer name Frank Brewster, dated Decem-
ber 30, 1953, 1,000 shares Affiliated Fund, Inc., at $5.17,
total amount $5,170 1212 1435
89A. Registration card from the El Rancho Motel, Millbrae,
Calif., in the name of Frank Brewster 1221 1436-
89B. Registration card from the El Rancho Motel, Millbrae, 1437
Calif., in the name of Mr. and Mrs. Mel Eisen 1221 14-3.8-
89C. Registration card from the El Rancho Motel, Millbrae, 1439
Calif., in the name of Richard Cavallero 1221 1440-
89D. Registration card from the El Rancho Motel, Millbrae, 1441
Calif., in the name of T. McNulty, for the period Sep-
tember 9-12, 1955 1221 1442
90. Contract for pinball machines between the Amusement
Association of Washington, signed by Fred Galeno for
the association, and the Wholesale & Retail Delivery
Drivers and Salesmen, and siened bv Paul J. Smith and
Sam D'Moss for Local No. 353, dated May 1, 1952 1229 1443-
91 A. Tickets No. 010494 and No. 010195, and card of United 1444
Air Lines, dated December 14, 1954, purchased by F. W.
Brewster for Mr. Galeno, from San Francisco to Los
Angeles and return, in the amount of $93.18 1237 1445
VI CONTENTS
EXHIBITS— Continued
Intro-
„ , ., .^ ^T ducedon Appears
Exhibit No. page on page
91B. Tickets No. 201044 and No. 201045, and United Air Lines
card, dated .June 23, 1954, purchased by Rita M. Prasch
for Mr. and Mrs. Galeno, from San "Francisco to Los
Angeles and return, in the amount of $181.94 1337 1446
92A. Joint Council No. 28 check dated January 8, 1954, No.
5335, payable to Fred Galeno, in the amount of $507.50_ 1240 1447
92B. Joint Council No. 28 check dated Julv 24, 1953, No. 5039,
payable to Fred Galeno, in the amount of $1,225 1240 1448
93. Letter to John F. English, secretary-treasurer, Interna-
tional Brotherhood of Teamsters, "dated November 28,
1952, submitting expenses in the amount of $1,093.30,
and record of having been paid. 1 1248 1449-
94A. Statement of account from Dimnv Lee Walton, "Sweenev 1450
job," dated November 22, 1954,' in the amount of $514_1 1256 1451
94B. Western Conference of Teamsters check dated December
9, 1954, No. 7937, payable to Dimnv Lee Walton, in the
amount of $514 1 1257 1452
95A. Statement from Dimnv Lee Walton, "Sweenev job," dated
November 1, 1954, in the amount of $2,818 1257 1453
95B. Statement from Dimnv Lee Walton, dated November 1,
1954, in the amount of $5,847.58, showing credit of
$4,039.06, leaving a balance of $1,808.52...: 1257 1454
95C. Statement from Dimnv Lee Walton, dated November 1,
1954, "Sweeney job," in the amount of $1,274.19 1257 1455
95D. Statement from Dimnv Lee Walton, dated November 1,
1954, "Sweeney job," in the amount of $1,018.82 1257 1456
95E. Statement from Dimny Lee Walton, dated November 1,
1954, "Sweeney job," for master bath, recreation room,
and living room, and packing and shipping 1257 1457
95F. Statement from Dimnv Lee Walton, dated November 1,
1954, "Sweeney job,"" in the amount of $299.72 1257 1458
95G. Statement addressed to Mr. F. W. Brewster from Dimny
Lee Walton re Mr. and Mrs. John Sweeney, job total-
ing $4,039.06 1257 1459
95H. Statement from Sunglo Venetian Blind Manufacturing to
Mrs. D. L. Walton, covering blinds and drapes, dated
November 10, 1954, in the amount of $.301.79 1257 1460
96A. Western Conference of Teamsters check No. 7687, dated
September 30, 1954, payable to Dimnv Lee Walton, in
the amount of $4,039.06 \ 1257 1461
96B. Western Conference of Teamsters check No. 7878, dated
November 16, 1954, payable to Dimnv Lee Walton, in
the amount of $2,110.31 1 1257 1462
97. Western Conference of Teamsters check No. 7601, dated
August 25, 1954, payable to John Sweenev, in the
amount of $25,000 ^ 1261 1463
98. Western Conference of Teamsters check No. 7358, dated
June 11, 1954, payable to Harrv Apple, in the amount
of $3,115 1 1272 1464
99 A. Invoice from Standard Service Tire Co., K 70557, care of
Frank Brewster, in the amount of $62. 32 1283 1 465
99B. Receipt and paid bill of Western Conference of Teamsters
showing amount due to Superior Auto for "horse truck"
repairs 1283 1466
100. Statements from Standard Service Tire Co. to Western
Conference of Teamsters, dated October 31, 1954 1283 1467-
101. Western Conference of Teamsters check No. 7811, payable 1472
to Standard Service Tire Co., in the amount of $1,000. 12 1283 1473
102. New car purcha»se order in the name of Marv James, from
Harry Apple, Inc., at a cost of $3,115.-/ 1284 1474
103. Western Conference of Teamsters check No. 7895, dated
December 1, 1954, payable to Tim McCulIough, in the
amount of $2,500 ." 1294 1475
CONTENTS Vn
EXHIBITS— Continued
Intro-
duced on Appears
Exhibit No. page on page
104. Wostorii Conference of Teamsters check No. 10496, dated
S(>ptoniber 11, 1956, payable to Tim McCullough, in the
amount of $500 1296 1476
105. \^'estern Conference of Teamsters check No. 7408, dated
June 30, 1954. payable to H. E. Leonard, in the amount
of$5,000 : 1296 1477
106. Western Conference of Teamsters check No. 7729, dated
October 12, 1954, payable to H. E. Leonard, in the
amount of $3,000 1297 1472
107A to 107S. Labor organization registration forms submitted by
International Brotherhood of Teamsters, Washington,
D. C, bv local 174, Seattle, Wash., and by Joint Council
of Teamsters No. 28, Seattle, Wash * *
108. Comparison of total compensation and allowances of
Frank Brewster as shown on Department of Labor
reports submitted by local 174, with data in income-tax
returns filed bv Frank Brewster, International Broth-
erhood ofTearnsters 1304 1479
109. Comparison of total compensation and allowances as
shown on Department of Labor reports filed bj' Inter-
national Brotherhood of Teamsters with data in income-
tax returns. International Brotherhood of Teamsters,
filed by Frank Brewster 1304 1480
110. Western Conference of Teamsters check No. 5, dated July
24, 1955, payable to Samuel B. Bassett, in the amount
of $100,000_'. 1306 1481
111. Western Conference of Teamsters check No. 7, dated Sep-
tember 13, 1955, payable to Sixth and Denny Branch,
Seattle First National Bank, in the amount of $50,000.. 1307 1482
112A. Annual return of organization exempt from income tax,
form 990, for the year 1950 for Joint Council No. 28
Building Association 1367 1483-
112B. Income tax form 990 for the year 1951, for Joint Council 1486
No. 28 Building Associatiori 1367 1487-
112C. Income tax form 990 for the year 1952, for Joint Council 1489
No. 28 Building Association : 1367 1490-
112D. Income tax form 990 for the year 1953, for Joint Council 1492
No. 28 Building Association 1367 1493-
112E. Income tax form 990 for the year 1954, for Joint Council 1495
No. 28 Building Association 1367 1496-
112F. Income tax form 990 for the year 1955, for Joint Council 1498
No. 28 Building Association 1367 1499-
113. Loans receivable as of December 31, 1955, as per inyesti- 1502
gation and as per records of Local 174 1374 1503
114. Summary of loans receivable of Joint Council 28, showing
balance at the end of each year for 1952, 1953, 1954, and
1955 1 1375 1504
115. Summary of the loans of the Westerh Conference of Team-
sters, showing balance at January 1, 1954, and Decem-
ber 31, 1954, 1955, and 1956 1375 1505-
116A. Statement showing loans due the retirement trust fund 1506
No. 1, listing the balances at the end of each year for
1954, 1955, and 1956 1377 1507
116B. Statement showing loans due the Western Conference of
Teamsters retirement fund No. 2, listing the balance
at the end of each year for 1955 and 1956 1377 1508
Proceedings of —
March 19, 1957 1111
March 20, 1957 ... _ . 1189
March 21, 1957 1271
March 22, 1957 1351
*May be found in the files of the select committee.
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
TUESDAY, MABCH 19, 1957
United States Senate,
Select Committee on Improper Activities
IN the Labor or Management Field,
Washington^ D. C.
The Select Committee met at 10 a. m., pursuant to Senate Resolution
74, agreed to January 30, 1957, in the caucus room. Senate Office
Building, Senator John L. McLellan (chairman of the select Com-
mittee) presiding.
Present : Senator John L. McClellan, Democrat, Arkansas ; Senator
Irving M. Ives, Republican, New York; Senator John F. Kennedy,
Democrat, Massachusetts ; Senator Sam J. Ervin, Jr., Democrat, North
Carolina; Senator Pat McNamara, Democrat, Michigan; Senator
Joseph R. McCarthy, Republican, Wisconsin ; Senator Karl E. Mundt,
Republican, South Dakota; Senator Barry Goldwater, Republican,
Arizona ;
Also present : Robert F. Kennedy, chief counsel to the Select Com-
mittee; Jerome Adlerman, assistant counsel; Carmine S. Bellino,
accounting consultant; Pierre Salinger, investigator; Alphonso F.
Calabrese, investigator; Ruth Young Watt, chief clerk.
The Chairman. The committee will be in order.
(Present at the convening of the hearing were Senators McClellan,
Ives and Ervin.)
The Chairman. We will resume the public hearings in this inquiry
and we will immediately proceed to further interrogation of the
witness, Mr. Frank Brewster.
Will you come around, Mr. Brewster ?
TESTIMONY OF PRANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIPPIN AND JOHN K. PICKENS— Resumed
The Chairman. All right, Mr. Kennedy.
Gentlemen, under the rules we are not to snap pictures of the witness
while he is testifying. That order of the committee will be observed.
Mr. Kennedy. Mr. Brewster, when you were here before we were
talking about Mr. Mel Eisen. How long has Mel Eisen worked for
you?
Mr. Brewster. In what capacity ?
Mr. Kennedy. Well, in what capacity does he work for you now
privately ?
Mr. Brewster. He isn't working at all for me at the present time.
Mr. Kennedy. In what capacity did he used to work for you ?
1111
1112 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewsti;r. He worked as a trainer and after that he worked
as an organizer in Los Angeles.
Mr. Kexxedy. He was hired by the teamsters as an organizer?
Mr. Brewster. Yes.
Mr. Kennedy. What experience had he had prior to that time that
you would hire him as an organizer for the teamsters.
Mr. Brewster. The experience that he had that I felt that I would
use him in was the experience that he acquired on the racetrack, to
organize the people involved in labor at the racetrack.
Also, I believe that he had an intelligence very much beyond the
average and he is a young man, and I thought that he would develop
into a very good organizer.
Mr. Kennedy. You did not feel that you had people in the team-
ster organization already that were entitled to the position of organizer
rather than somebody who was a racehorse trainer ?
Mr. Brewster. I have always tried to take people from the ranks
if it is possible. I have also gone on the outside for a special line of
people.
Mr. Kennedy. And you thought his special qualifications were that
he had been around the racetrack so much ?
Mr. Brewster. He had the experience of the people that were em-
ployed by the racetrack.
Mr. Kennedy. Is that where he is working now, as an organizer at
the racetrack?
Mr. Brewster. No, he is not. At the present time-
Mr. Kennedy. Has he been working there as an organizer?
Mr. Brewster. He has some of the time and some of the time he
has been working out organizing generally with other organizers that
go out in groups of 2 or 3.
Mr. Kennedy. What sort 43f employees were you attempting to
organize at the racetrack?
Mr. Brewster. Everyone that works on gates and barn areas. We
have a petition now in the western part of the country of around 350
grooms that want to be organized.
Mr. Kennedy, Some of the grooms?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Has he been working on that, trying to organize
the grooms?
Mr. Brewster. He has been consulting grooms, yes, and hearing
their story.
Mr. Kennedy. Has he been trying to organize the grooms?
Mr. Brewster. Not to the standpoint of organizing the grooms.
The grooms have come to us. I am making a stud}^ before I go into
the category of organizing the grooms. I might explain that here
some time ago, and I do not know how many years, but we made an
attempt to organize the grooms and it fell flat.
I am very skeptical on going back into organizing them again. I
want the information before I go in that they desire organization
themselves before we attempt to organize them.
The Chairman. Mr. Brewster, when did you first employ this man
Mel Eisen as a trainer for you ?
Mr. Brewster. It is some 3 or 4 years ago, and I do not know the
exact date, Senator.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1113
The Chairman. How long did he work for you as a trainer ?
Mr. Brewster. For practically most of the time during that period
of time. The latter part of it he left and went training for someone
else.
The Chairman. He has been one of your trainers for the last 3 or 4
vears ?
Mr. Brewster. I would believe so. I am not positive about the
time. I have not checked.
The Chairman. Well,that is your best judgment?
Mr. Brewster. To the best of my knowledge, yes, sir.
The Chairman. The last 3 or 4 years ?
Mr. Brewster. Yes, sir.
The Chairman. When did he leave your employ ?
Mr. Brewster. To the best of my recollection, possibly 6 months
before I put him on as organizer.
The CiiAiRiHAN. Before you put him on as an organizer?
Mr. Brewster. Yes, sir.
The Chairman. That is not very clear. When did you put him on
as an organizer?
Mr. Brewster. Well, I would say about between 8 and 10 and 11
months ago.
The Chairman. 8 to 11 months ago?
Mr. Brewster. 8 to 11 months, somewhere in there.
The Chairman. Prior to that time he had been in your employ
exclusively?
Mr. Brewster. No.
The Chairman. Well, as related to the union, he was not in the
union's employ at any time prior to 8 or 11 months ago?
Mr. Brew^ster. Other than information that I would want to get
from him, relative to the rumors and conditions that I had heard
around the racetrack.
The Chairman. What were those rumors and conditions that inter-
ested you?
Mr.*^BREWSTER. Rumors were in regard to trying to build up a better
organization in the parking lot attendants, such as the seniority that
they had. It was not written out to the degree that it should be.
I think that every day maybe 2 or 3 times a day, some of these people
talked to Mel Eisen and Mel in return M^ould talk to me.
The Chairman. Did you have him employed by the union for that
purpose ?
Mr. Brewster. Not when he was thei'e, but it was natural that they
would go to him because pi'obably he would convey the information
to me.
The Chairman. You can help strighten this out right quick. I
want to know when lie was first employed and how long he remained
in your personal employ before he became connected in any way with
the union.
Mr. Brewster. Well, I said to the best of my knowledge, around
3 to 4 years.
The Chairman. He continued then in your private employ until
8 or 1 1 months ago ?
Mr. Brewster. In there some place.
The Chairman. Sir?
1114 lAIPROPER ACTIVITIES EN' THE LABOR FIELD
Mr. Brewster. That is roughly the time, yes.
The Chairmax. Prior to that time, prior to 8 to 11 months ago,
Jie was not paid and earned no salary or compensation from the miion ?
Mr. Brewster. That's right.
The Chairman. Now, since then, has he earned compensation both
Ironi you and the union ?
Mr. Brewster. No, not from me.
The Chairman. He was on the union's payroll, was he?
Mr. Brewster. Yes, sir.
The Chairman. For how long a period of time ? You say he is not
on thei'e now ?
Mr. Brewster. No, I said that I believe between 8 and 11 months,
Senator.
The Chairman. When did he leave the luiion's employ ?
Mr. Brewster. About 3 to 4 weeks ago.
The Chairman. He left about a month ago, then ?
Mr. Brewster. Roughly speaking, yes, sir.
The Chairman. What was his salary with the union ?
Mr. Brewster. $150 a week.
The Chairman. $150 per week?
Mr. Brewster. Yes, sir. Ithink that was his salary.
The Chairman. Plus expenses ?
Mr. Brewster. Yes, sir.
The Chairman. Did he do any organizing ?
Mr. Brewster. ^"NHiile he was with the union, absolutely, he did.
The Chairman. Where did he organize ?
Mr. Brewster. He organized out of our offices in Los Angeles, as
general organizer.
The Chairman. Can you point to any place that he organized, where
he got results ?
Mr. Brewster. I have a director of that organizing campaign dow^i
there and he reports to him. I questioned him from time to time of
how Mel Eisen was doing as an organizer and the reports were very
favorable.
The Chairman. I think that we can get this clear. Up to, say, 8
to 11 months ago, he earned no compensation for salary from the union ?
Mr. Brewster. That is right.
The Chairman. And, therefore, the union should not have paid him
any money during that time. It owed hhn nothing and he was render-
ing no service to the union prior to that time, is that correct?
Mr. Brewster. He did serve for the union.
The Chairman. You told me he was in your private employ.
IVIr. Brewster. Yes, but I did say that he gave the information that
was given him and lie talked to me and I had him talk to people on
the racetrack and I also said that^
The Chairman. You could have him do that, working for you,
could you not ?
Mr. Brewster. Well, it was union work.
The Chairman. Any conversation you have about union may be
union work, but are you trying to say now that during the time he
was employed by you, and in your employment as a trainer of your
horses, that he also did union work and the union owed him money
for it?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1115
Mr. Brewster, I don-t say tlie union owed him inone}' for it. I
said he did nnion work.
Mr. Kennedy, Now, wliile he was employed by you as a trainer,
Mr. Brewster, he was in several instances travelino- at the union ex-
pense, is that ri^ht ?
INIr. Brewster. I don't recall. You say, "several'" and I don't re-
call several times,
INIr. Kennedy. Do yon think it is i^os^'ble that it was several times
that lie was travelin<r at union expense ?
Mr, Griffin, iNIr, Chairman, could we have that light off up there,
l)1ease, sir?
The Chairman, Turn off the light,
Mr, Breavster. Will you repeat the question ?
Mr. Kennedy. Do you think it is possible that there Avere several
times that he traveled at union expense ?
Mr. Brewster. I don't think several times, no.
Mr. Kennedy, Have you inquired into the matter at all since 3'0ii
aj^peared here the last time to find out how many times he traveled at
union expense?
Mr. Brew^ster, No, sir, I haven't, I haven't had the opportunity.
Mr. Kennedy. Is he known by any other name, other than Mel
Eisen ? Does he have a nickname ?
Mr. Brewster. I have never heaixl of one.
Mr. Kennedy, He does not have the name of "Bobby Eisen"?
Mr, Brewster. I don't know. He could have been Bobby, and I
never remembered.
Mr. Kennedy. Do you know Bobby Eisen ?
Mr, Brewster, I know Bobby Eisen, yes, sir,
Mr. Kennedy, That is his son ?
Mr, Brewster. Yes, sir.
Mr. Kennedy, Does Mel Eisen's son also travel at union expense?
Mr, Brewster, I don't remember,
Mr. Kennedy. Here we have a voucher showing a trip from Los
Angeles to San Francisco and back to Los Angeles at a cost to the
union of $46.09 for Bobby Eisen as an employee of the union. Was
he an employee of the Western Conference of Teamsters ?
Mr. Brewster. He was not. Can I see it, please?
Mr. Kennedy. Yes.
(A document was handed to the witness.)
(At this point in the proceedings Senators Mundt and Goldwater
entered the hearing room . )
Mr. Kennedy. Could you give us any explanation of that ?
Mr. Brewster. I cannot until I clieck on it further when I go back
into Seattle.
jMr. Kennedy, You have no explanation as to why ?
]\Ir, Brewster. Not at the present time, but I will have and I will
explain it then,
Mr. Kennedy. Was it a procedure that you followed to allow Mr,
Eisen's family to ride at union expense ?
Mr, Brewster, It was not,
Mr, Kennedy. Here is another trip for Mr. Bobby Eisen. This is
from San Francisco to Los Angeles to Modesto. Did Mr. Eisen not
live in Modesto? Did he not have a house or a home there?
1116 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Not that I know of.
Mr. Kennedy. Near Modesto ?
Mr. Brewster. Not that I know of.
Mr. Kennedy. Well, it is a trip from San Francisco to Los Angeles
to Modesto to San Francisco, United Air Lines, at a cost to the union
members' dues of $55.22 for Bobby Eisen.
The Chairman. The first photostatic copy of the records of the
Northwest Airlines that the witness identified will be made exhibit No.
66. This one that he is now examining, if he identifies it
Mr. Brewster. Was that for Northwest or United Air Lines?
The Chairman. This one is Northwest, in the amount of $46.09.
Mr. Brewster. The only reason I think there must be some error
there, the Northwest does not fly from San Francisco to Los Angeles.
The Chairman. One is Northwest Airlines and the other is United
Air Lines. The one I referred to, United Air Lines, $46.09. The other
item has nothing to do with the matter under inquiry.
The Chair was mistaken and I looked at the top of the photostatic
copy instead of the bottom. This bottom one. United Air Lines, Inc.,
in the amount of $46.00 is made exhibit No. 66.
(The document referred to was marked '''Exhibit No. 66" for refer-
ence and will be found in the appendix on p. 1383.)
The Chairman. Will you identify the document that you have in
your hand ?
Mr. Brewster. Identify it ?
The Chairman. What is it ?
Mr. Brewster. It is a signature of a cardholder.
The Chairman. A signature of what ?
Mr. Brewster. A cardholder, airline cardholder, one John J.
Sweeney, and the name of the user, other than the cardholder, is
Bobby Eisen and it is ticket number and form number and so on from
San Francisco to — I don't know what this is — I can't make it out — it
is Los Angeles to Modesto, to San Francisco, and I don't know how
you can fly that way. Modesto is right outside of San Francisco.
Mr. Kennedy. Do you have any explanation of the fact that the
union was paying for that ?
Mr. Brewster. I haven't any. It was signed by John J. Sweeney,
and not by myself.
The Chairman. What is the amount of it ?
Mr. Brewster. Let me see that again, please. It is $55.22.
The Chairman. You say it is signed by John J. Sweeney ?
Mr. Brewster. Yes, sir.
The Chairman. Who was he at that time ?
Mr. Brewster. At that time he was secretary-treasurer of the West-
ern Conference of Teamsters.
The Chairman. All right, proceed. That will be made exhibit
No. 67.
(The document referred to was marked ''Exhibit No. 67" for refer-
ence and will be found in the appendix on p. 1384-1385.)
Mr. Kennedy. Here is another ticket from Seattle to Los Angeles,
to Seattle, and another ticket from Los Angeles to Seattle for Bobby
Eisen and Brewster, a total of $205.98.
The Chairman. That will be exhibited to the witness.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1117
Mr. Kennedy. And another ticket from Los Angeles to Seattle for
Cavallero, for Richard Cavallero, and he ^A•as whom? Can you iden-
tify him ?
Mr. Brewster. Yes, sir. Richard Cavallero was a jockey that I
had for a short period of time.
Mr. Kennedy. That was for a total of $71.01.
The Chairman. Present the document to the witness and let him
examine it.
(A document was handed to the witness.)
Mr. Kennedy. That ticket was purchased through your secretary,
was it not, Miss Prasch?
Mr. Brewster. She has signed the order.
Mr. Kennedy. Did you instruct her to do so ?
Mr. Brewsticr, I can't tell one. I guess it is very faint.
Mr, Kennedy. Did you instruct your secretary. Miss Prasch, to do
so?
Mr. Brewster. I don't remember instructing her ; no.
Mr. Kennedy. Would she have done it without your instructions?
Mr. Brewster. I don't think she would have done it without the in-
structions of myself or John Sweeney.
Mr. Kennedy. John Sweeney is deceased now, is he not?
Mr. Brewster. He is.
The Chairman. Will you identify it and what is the document be-
fore you, so I can get it in the record.
Mr. Brewster. Well, the document is two orders, it looks like. It
is on the same order but two distinct tickets, and there is no flight
number or anything on them. It could have been that they came out
on the same order and it could have been different days that the flight
was on. I don't remember traveling with B, Eisen at any time, it
could be for. xVnd the other one was the one that I think that I ex-
plained the other day, that they had trouble getting out and I in-
structed Rita Prasch at that time to get the ticket and I was going to
compensate the organization.
The Chairman. What is the amount of the two tickets ?
Mr. Brewster. One ticket is $205.98, but there is an amount of
about $1;j4.9T that is my personal trip out of the $205.98. The other
one is $71.01 and both of them are signed by Rita Prasch, it looks
like, and the one is very faint.
The Chairman. All of that money came out of union dues ?
Mr. Brewster. All of that money I presume came out of the West-
ern Conference of Teamsters.
The Chairman. That is union dues, is it not ?
Mr. Brewster. Indirectly, yes.
The Chairman. That may be made exhibit No. 68.
(The document referred to was marked ''Exhibit No. 68"' for refer-
ence and will be found in the appendix on p. 1336-1337.)
Mr. Kennedy. I see on there that there is a name, Grinstein. Who
is Mr. Grinstein ?
Mr. Brewster. Mr. Grinstein is a doctor in the city of Seattle.
Mr. Kennedy. Is he Mr. Beck's i)hvsician ?
Mr. Brew\ster. I believe he is.
Mr. Kennedy. For what reason would the teamsters be paying the
transportation of Dr. Grinstein for $90.97 ?
1118 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. At one time Mr. Grinstein was the physician that
was the adviser on our health and welfare. He sometimes attended
the western conference and sometimes he attended the policy meetin.^s.
Mr. Kennedy. At union expense 'i
Mr. Brewster. Yes ; if he was asked to come down to explain that.
Can I explain a little further on that activity, please ?
We were having some trouble with a certain few doctors, and not
too many, on overchartres and so forth. We were tryin^^ to work out
some formula, something to get the doctors to have something in the
way of a set amount or as close as they possibly could to the regular
operations that we have. And, also, we were trying to figure out
when and if we might have been overcharged on account of the organi-
zation, taking advantage of the organization itself.
When this first went into effect, Mr. Grinstein or Dr. Grinstein sat at
different times with our organization and we asked him for pro-
fessional advice in order to set up the benefits and the amount of
money that would be paid for benefits, such as office calls, home calls,
and so on, and also, the amount that he felt would be right for many
operations that would be performed that were very common in the
Teamsters organization with their wives and families and children.
We derived at some figure through his advice. That is, at those
times, or most of those times, that we had him. We haven't used him
and in fact for the last roughly 2 years or 18 montlis, I don't believe
we have used him or consulted him at all.
T do remember cases where we felt there were exorbitant charges and
we had him check with tlie other doctor and at different times we were
able to reduce the amount of the bill. That was liis play, and it might
possibly and I don't know whether it was or whether it wasn't or who
at that time ordered him to get the ticket and I don't remember it my-
self, but it could have been.
Mr. Kennedy. You had a doctor down in Los Angeles anyway, and
this is a ticket down to Los Angeles. You had a physician down there,
did you not ?
Mr. Brewster. Not that was conversant with the health and wel-
fare ; no, sir.
Mr. Kennedy. Now, to go back to Mr. Mel Eisen, did the Western
Conference of Teamsters pay any of the hotel bills for Mel Eisen
when he was attending any of the horse race meetings ?
Mr. Brewster. I don't remember any.
Mr. Kennedy. Wlien he was acting in the capacity of a trainer for
you, was the union on any occasion paying his hotel bills?
Mr. Brewster. I don't remember of any.
Mr, Kennedy. You do not remember that at all ?
Mr. Brewster. I don't.
Mr. Kennedy. You have no recollection of it ?
Mr. Brewster. No recollection.
Mr. Kennedy. I want to show you the registration.
The Chairman. The Chair presents to the witness a document,^ a
photostatic copy of what purports to be a hotel registration and I will
ask you to examine it.
(A document was handed to the witness.)
The Chairman. Will you see if you identify it ?
IMPROPER ACTIVITIES IX THE LABOR FIELD 1119
Mr. Brewster. Mr. Clinirnian, tliis document lias no reiristration o{
wliere it was.
Mr. Kexxedy. That came out of tlie paid bills of the Western Con-
ference of Teamsters,
The Chairman. It is from the teamsters files as the Chair uiuler-
stands. Can you explain it ?
Mr. Brewster. No, sir; I cannot. I don't remember the transactioii
at all.
The Chairman. What does it show was paid out to this man b}' tlie
teamsters ?
Mr. Brewster. It looks like it is — I don't see any amounts on it.
There is a total here of $37.25.
Mr. Kennedy. I think that is for the telephone bill. But let me
ask you this : Did you pa}^ or did the Western Conference of Teamsters,
or do you have any knowledge of the Western Conference of Teamsters
paying the hotel Ijill at the El Rancho Motel of Mr. Mel Eisen and Mr.
Richard Cavallero ?
Mr. Brewster. I do not.
Mr. Kennedy. You have no knowledge about that at all ?
Mr. Brewster, No, sir.
Mr. Kennedy, We have an affidavit here, Mr. Chairman, from the
partner in the ownership of the El Rancho Motel in Millbrae, Calif.
The Chairman. The Chair will read this affidavit to you, Mr. Brew-
ster, for {^ny comment you care to make.
State of California
County of San Mateo, ss:
I, p]arl Wilms, make the following statement of my free will and with no
promise of inminnity. That I am a partner in the ownership of the El Rancho
Motel in JMillbrae, Calif., and that I reside at that motel.
I have examined the records of the motel and found registration cards in the
names of Frank W. Brewster, Richard Cavallaro, and Mr. and Mrs. Mel Eisen.
In the case of Brewster, I received checks from teamster organizations in con-
nection with his stays.
There appears on i;he records of this motel the notation that a check for $750
was cashed on October 3. 1954, and that .$397 of this check went for payment
of the bill of Richard Cavallaro and the remaining .$353 was given to Mel Eisen.
I okayed the cashing of that check and to the best of my knowledge it was a
check written by the teamsters' union. I have also examined the records of this
motel and found that Terry McXulty was a guest here in September of 1955.
(Signed) Eakl AVii.ms.
Subscribed and sworn before me this 12tli day of March 1957.
[seal] Isobel Smart.
In and for the County of San Matet). My commission expires : November
2G„ 19(50.
All right, Mr. Counsel, you may proceed.
Mr. Griffin. Could the witness look at the affidavit? Because I
think the affidavit is really confusing.
The Chairman, We are trying to get some things unconfused if
we can.
(The affidavit was handed to the witness.)
(At this point in the proceedings. Senator McNamara entered the
hearing room.)
(The documents referred to in the affidavit were subsequently intro-
duced as exhibits 89A through 89D and will be found on pp. 1436-
1442 of the appendix,)
89330— 57— pt. 4—2
1120 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. I don't remember the transaction, but I am going to
check on it and the gentleman who made out the affidavit and so forth,
so that he can probably refresh my memory.
Mr. Kennedy. Who, besides you, would order $750 sent down to
the El Rancho Motel to pay for your trainer and your jockey?
Mr. Brewster. I stayed there myself.
Mr. Kennedy. Could you give us an explanation as to why that
was done ^
Mr. Brewster. I can't at the present time until I go into it thor-
oughly. I haven't had an opportunity to examine it or even talk to
the man. Everybody has an opportunity but myself to talk to these
witnesses.
Mr. Kennedy. Here it says that $353 in cash was given to Mel Eisen.
Can you explain that?
Mr. Brewster. No, I cannot.
Mr. Kennedy. You have no explanation for it whatsoever?
Mr. Brewster. No, I cannot. I don't know whether I did. He says
I did and I want to iind out so that I can see whether I did. I don't
remember.
Mr. Kennedy. Do you remember at all paying the liotel bills of your
jockey and your trainer? You do not have any recollection of that?
Mr. Brewster. I remember paying bills in there, because I used to
stay there frequently. How to desegregate them, I don't know.
Mr. Kennedy. Going through your books, the Western Conference
of Teamsters, this $750 is charged to officer and delegates expenses and
allowance. Can you explain that?
Mr. Brewster. No, I cannot.
Mr. Kennedy. Was Mel Eisen, your trainer, or Cavallero, your
jockey, were they officers or delegates?
Mr. Brewster. They were not.
Mr. Kennedy. Why would it be charged on your books as officers
and delegates ?
Mr. Brewster. That I don't know. I haven't had a chance to check
myself.
The Chairman. Well, Mr. Brewster, I think in all fairness we should
again let the record show that you were given an opportunity to dis-
cuss with the staff these records and documents before you took the
witness stand.
I believe you declined to discuss these matters with the staff ; is that
not correct ?
Mr. Brewster. That wasn't exactly correct. I don't know whether
people have had a lot of experience with the staff, but the staff can
do a pretty good job of getting you confused and you haven't an op-
portunity
The Chairman. I do not think they have to work at it very hard.
You seem to be confused now. The point I am making is that when
you say you have had no chance, you have had a chance to talk to the
staff about these records, have you not, and you declined? That is
correct, is it not ?
Mr. Brewster. I wanted to explain it but I don't think that I have
an opportunity.
The Chairman. All right, explain.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1121
Mr. Brewster. I just say it is impossible for the staff to come in for
•2 hours and say, "Where were you on August 4, 1954, or 1951, or some-
thing else?" And have me have a chance to go ahead and find out all
of the things they wanted. And I felt, also by advice of my attorney,
rliat I should not talk to the staff.
The Chairman. All right. That settles it ; you did not talk with
rliem.
Proceed, Mr. Counsel.
Mr. Kennedy. We have a check here to the El Rancho Motel, dated
September 29, 1954, in the amount of $750 and it is signed by Frank
W. Brewster, president, John J. Sweeney, secretary-treasurer of the
Western Conference of Teamsters.
The Chairman. Present this document to the witness and see if
he can identify it.
(A document was handed to the witness.)
Mr. Brewster. Yes, I can identify it.
The Chairman. What is it ?
Mr. Brewster. The El Rancho Motel.
The Chairman. It is a photostatic copy of a check ; is it not ?
Mr. Brewster. Yes, of a check. It is signed by myself and John
Sweeney.
The Chairman. Who is it payable to ?
Mr. Brewster. The El Rancho.
The Chairman. El Rancho Motel ?
Mr. Brewster. $750, yes.
The Chairman. Was that union business ?
Mr. Brewster. I can't recall whether it was or not.
The Chairman. You do not even Imow whether it was your per-
sonal account or for your trainers, or whether it was union business?
Mr. Brewster. I do not at the present time, no, sir.
The Chairman. How in the world, Mr. Brewster, are you going to
make an audit and pay back what you owe if you do not know ? You
cannot recognize these things. How are you ever going to pay it back '?
Mr. Brewster, I believe that I will do a pretty good job, if I am
ariven an opportunity.
The Chairman. Well, the committee is certainly not interfering
with you repaying any amount that you owe.
Mr. Brewster. I would like to be in a position where I could send
the committee a report of what I do, when I get a chance to get out
of here and try and do it.
The Chairman. The committee will be very glad to receive it.
That may be made exhibit No. 69, that check.
Mr. Kennedy. These are both documents showing Mr. Cavallero
and Mel Eisen to be registered at the El Rancho Motel.
The Chairman. I want the check made exhibit No. 69. That has
been identified.
(The document referred to was marked "Exhibit No. 69" for ref-
erence and will be found in the appendix on p. 1388.)
The Chairman. You will have to place somebody else on the stand
ro swear to these.
Mr. Kennedy. Now, the El Rancho Motel, as I understand it, Mr.
Brewster, is about 4 miles from the Bay Meadows Racetrack and about
2 miles from the Tanforan Racetrack; is that correct? Is that ap-
proximately correct ?
] 1 22 IMPROPER ACTWITIES IX THE LABOR FIELD
Mr. Brewsteh. I never measured it, but I will take your word for it.
Mr. Kennedy. Was there organizational work going on at the El
Kancho ?
Mr. Brewster. There was at both racetracks,
Mr. Kennedy. We will go back to the fact — was Richard Cavallero
or Mel Eisen working for the teamsters union during this period of
time, September and October of 1954 ?
Mr. Brewster. Xot on the payroll of the Western Conference.
Mr. Kennedy. But they were working for you; is that right?
Mr. Brewster. They were.
Mr. Kennedy. Now, what about "S. Johnson"? Do you know a
man by the name of Johnson ? Is he also an employee of yours ?
Mr. Brew^ster. I don't recall "S. Johnson."' We have got probably
several thousand Johnsons.
Mr. Kennedy. Was this "Southern Johnson" ? Do you know South-
ern Johnson ?
Mr. Brewster. No, I don't.
Mr. Kennedy. Of Clairbrook stock farms ?
Mr. Brewster. I don't recall the name.
Mr. Kennedy. You do not ?
Mr. Brew^ster. No, I do not.
Mr. Kennedy. You do not know him as an employee of yours ?
Mr. Brewster. I don't recall the name of S. Johnson as an employee
at any time.
Mr. Kennedy. Would you check on Mr. Johnson and find out if he
is an employee of yours? Our records seem to indicate that he is, but
I would like you to check on it, would you ?
Mr. Brewster. I will.
Mr. Kennedy. What about Mr. Tei-ry McNulty ?
]\Ir. Brewster. Terry McNulty is an employee of the Western C'on-
f erence of Teamsters.
Mr. Kennedy. Is he also, or would you tell first how long have you
known Mr. Terry McNulty ?
Mr. Brewster. Ever since I started in, about 16 years old.
Mr. Kennedy. Has he done any work for you or your horses, or
your van or anything to do with that ?
Mr. Brewster. He has driven the van, yes, on weekends and so
forth, on vacation.
Mr. Kennedy. Pie also an-anged for tlie feeding of the horses, did
he?
Mr. Brewstek. Arranged for the feeding of the horses ?
Mr. Kennedy. Yes.
Mr. Brewster. What do you mean by that ?
Mr. Kennedy. Has he also done some of the purchasing of the feed
for the horses and done some of that kind of work?
Mr. Brewster. I tliink possibly he miglit have Iviiown someone that
had hay for sale and so forth. Is that what you mean ?
Mr. Kennedy. Well, anything like that.
Mr. Brewster. Yes, anything like that.
Mr. Kennedy. And he drove your van occasionally, did he?
Mr. l^REWSTER. Yes; he did.
Mr. Kennp:dy. Did he drive the van duiing the week, also?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1123
Mr. Brew.ster. He might possibly go into the >veek or worlv days,
but most of the time, T want to exphiiii this, tliat 90 percent of the
horses we shipped by a reguhir van. This was just an occasion when
this van was used, just intermittent occasions.
Mr. Kennkdv. Was he also walking some of youi- horses and did
he also do that occasionally ?
Mr. Brewster. At different times he would get up in the morning,
at probably 5 o'clock, and walked the horses before 6 or 7 o'clock.
Mr. Kennedy. For this work that he did for you, of driving the
van and purchasing the food and all occasionally, and walking the
horses occasionally, did you pay him?
Mr. Brewster. No, sir.
Mr. Kekxedy. He got ])aid by the Western Conference of Team-
sters ?
Mr. Brewster. Yes; but he did not do this, to my recollection, on
the western conference's time.
Mr. Kennedy. Why was he doing it then ?
Mr. Brewster. He is a very close, long-time friend of mine.
Mr. Kennedy. But lie never got paid by you at all for doing this
work ?
Mr. Brewster. No ; he never got paid.
Mr. Kennedy. P^or doing the work around the horses ?
Mr. Brewster. Doing the work around the horses.
Mr. Kennedy. He, also, has stayed at the El Rancho Motel, our
records show, and what kind of work was he doing for the Western
Conference of Teamsters at the El Rancho Motel ?
Mr. Brewster. There is no work that he did at the El Rancho
Motel. There is no work of the teamsters performed at the El Rancho
Motel.
Mr. Ej]NNedy. Well, could you explain to the conmiittee why he
also got his hotel bills paid at the El Rancho Motel ?
Mr. Brewster. That I do not Iniow, whether he did or did not.
Mr. Kennedy. He sent in vouchers. We have got some vouchers
here that he sent in.
Here he is registered at the El Rancho Motel on the 9th, 10th, 11th,
and 12th of September of 1955.
Here, Mr. Chairman, we have tlie vouchers that were furnished by
Mr. Terry ]McISrulty, submitted to the Western Conference of Team-
sters, some of them.
The Chairman. Present these vouchers to tlie witness and let him
identify them, please.
( The documents were handed to the witness. )
The Chairman. All right, Mr. Brewster, are j^ou ready? How
many documents have you examined there?
]Mr. Brewster. I am not through all of them yet, Mr. Chairman.
The CiiAiR^tAN. All right.
Mr. Brewster. At different times, and I am going to have to check
these with McNulty and fmcl out about it, but at different times
Mr. Griffin. Did you want him to identify them ?
The Chairman. I would like to have them identified and then you
can make the explanation. What has been pi-esented to you, Mr.
Brewster? What do you now have before you which you concluded
examining ?
1124 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. It is an expense from September 11, 1955, to Septem-
ber 15, 1955, inclusive, totaling $50, Terry McNulty, Western Con-
ference of Teamsters, organizer.
Do you want them all read ?
The Chairman. Just identify them. Do you have 4 or 5 or what?
Mr. Brewster. I have four, and then the checks that he received
and he receipted and cashed.
The Chairman. You identify those as records of the teamsters
union, do you, photostatic copies of records ?
j\Ir. Brewster. I do.
The Chairman. All right, they may be made exhibit No. TOA.
70B, TOC, TOD, and TOE, and so forth until they are all included.
(The documents referred to were marked "Exhibits Nos. TOA,
TOB, TOC, TOD, and TOE,"' for reference and will be found in the
appendix on pp. 1389-1394.)
Mr. Kennedy. Could you give us the figures on each one of them ?
Mr. Brewster. The first one is $G0.5T, $5T is the second, and $53.50,
and $i>9.50.
The Chairman. And the fourth one ?
Mr. Brewster. The first one was $60. Did vou get that one ? The
second is $5T, and $53.50, and $29.50.
Tiie Chairman. That makes four of them ?
Mr. Brewster. Yes.
The Chairman. Thank you very much.
Now, j\Ir. Counsel, you may proceed.
Mr. Kennedy. Did you have any statement that you wanted to
make about that?
Mr. Brewster. Yes. Mr. Terry McNulty also is an organizer oii
the highway, on the road. I would not say that he was driving a
van then. I am going to have to check and see what time he was.
and the chances are that when he came in he just put in his voucher
and I have sent him up and down the coast.
Mr. Kennedy. He was at the hotel on September 9, 10, 11, and 12.
and he submitted one of the vouchers there for those four days, I
think, amounting to about $29.
And now, at the El Eanclio Motel, he would not be there
Mr. Brewster. But there is a highway close to there that he checks
on trucks that run up and down the highway. It is a natural position
for an organizer, not to staj in the heart of the city, when he organizes
he stays out in motels and so forth.
At liayshore, I don't know whether you know it, there are probablv
as many trucks going on that Bayshore as there are any other place.
The Chairman. If this money was paid out for your benefit in your
racing business, you have never repaid it, have you, to the union {
Mr. Brewster. I haven't. I said the other day that I intend to.
The Chairman. All right.
Mr. Kennedy. When you were staying at the El Eancho Motel for
the racing season, at either the Tanforan or Ba}' Meadows, did yon
charge the union for your ex])enses ?
Mr. Brewster. I did because I didn't stay there just to go to the
racing season, and so forth. I had work in that area in San Francisco
and the amount of monej^ tliat I paid there Avas much less than the
amount of money that I would have paid in San Francisco for rooms.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1125
Mr. Kennedy. I notice that Avlien you are there it is often when the
racinjr season is on. So, for instance, the Tanforan track was goinir;
at the same time you were there and I am looking at this October 25
through December 15,
Mr. Brewster. One of our local unions is out in that vicinity, the
one that has
Mr. Kennedy. Did you take all of that time to look at the local
union ?
Mr. Brewster. Just a minute and I will tell you what time I took.
Mr. Kennedy. All right.
Mr. Brewster. I take time in going around and questioning and I
can probably take and find 100 people, when I go into the race track
at all, will come to me with some problems. I have even been in a
position of where I thought that I would consolidate the north and
south parts of the State of California to have one local union and
one person responsible for that local union.
I have worked with those people and worked with the organizers
and worked with the secretaries and worked with the people that be-
longed to that organization. I used to receive letters after letters that
in their opinion they weren't getting the proper representation through
the method that the imion was operating under and there are many
tracks around there that open up and so forth and they weren't getting
their seniority.
Mr. Kennedy. Have you finished ?
Mr. Brewster. For now.
Mr. Ivennedy. We have been talking about the van, Mr. Brewster,
and this van that Mr. Terry McNulty drove on occasions. Any of the
repairs or any of the work that Avas done on that van, was that charged
to tlie Western Conference of Teamsters ?
Mr. Brewster. Not to my knowledge.
Mr. Kennedy. You do not knoAv anything about that either ?
Mr. Brewster. I do not know anything about it.
Mr. Kennedy. Were you keeping up on what was going on with
the money and how the money was being used of the Western Con-
ference of Teamsters ? Were you keeping yourself advised '^
Mr. Brewster. I had a bookkeej^er for that purpose.
Mr. Kennedy. All of these things, that seem to have been going
on, you do not appear to know anything about, Mr. Brewster. I am
trying to find out about it.
Mr. Brewster. Probably not as well as I should.
Mr. Kennedy. Particularly when they were moneys that were going
to some of your employees. What about the van? You do not re-
member anything about that ?
Mr. Brewster. I do not.
Mr. Kennedy. Mr. Chairman, we have an affidavit from the Supe-
rior Auto Service.
Are you familiar with the Superior Auto Service? Do you know
that company ?
Mr. Brewster. I know that there is one. I have never met the
owners.
Mr, Kennedy. Do you know Ray Heiserman ?
Mr. Brewster, No, I don't. I just heard his name. That is all.
1126 IMPROPER ACTIVITIES m THE LABOR FIELD
The Chairman. Counsel may read the affidavit into the record, and
then interrogate the witness about it.
Mr. Kennedy (reading) :
I, Ray Heiseruiaii, residing at Route 2, Box 1265, Kent, Wash., having been
duly sworn on my oath, do voluntarily depose and say that :
I am the owner and operator of an automobile repair shop known as Superior
Automotive Service, located at 2133 Third Avenue, Seattle Wash. From time to
time, I repair and service automobiles owned by various organization of the
teamsters union.
Up until about 2 or 3 years ago, I did several repair jobs over a period of time on
a 1948 model, GMC, truck, equipped as a horse van to carry six horses. I under-
stood this truck was owned and used by Frank Brewster. These repair jobs
included relining brakes, replacing universal joint, replacing clutch, and replac-
ing the engine. It was about 1952 or 1953 when the engine was replaced and I
recall that the truck was towed into my shop. I informed the driver, whose
identity I do not recall, that the new engine would cost about $600 and that I did
not have the money to advance for its purchase. Soon thereafter, he brought
a check for about $600 signed by Frank Brewster which I used to purchase the
replacement engine. I do not recall the detailed description of this check or
whether it was drawn on Brewster's personal account or an account of the imion.
To the best of my knowledge, all or, at least, most of the charges for work
performed on the horse van have been paid by checks issued by one or more of
the teamster union organizations.
This van truck had the name "Breel Stables" painted on the side and I have
not seen the truck for about 2 years.
I solemnly swear that the foregoing statement dated this 8th day of March
1957, consisting of one page, has been read by me and it is true and correct to
the best of my knowledge and belief, so help me God.
(Signed) Ray Heisermau.
Ray Heiseeman.
Subscribed and sworn to before me this date, March 8, 1957.
( Signed) John H. Field, Notary Public.
Mr. Brewster. Can I read the statement ?
(Document handed to witness.)
( The witness conferred with his counsel.)
Mr. Kennedy. Mr. Chairman, some of the checks that we will dis-
cuss here are on their way in from the State of Washington.
The Chairman. All right, Mr. Brewster, the question is did you or
did you not pay for the repairs of your horse van or truck out of union
funds.
Mr. Brewster. Xot to my knowledge.
The Chairman. You say now that you did not ?
Mr. Brewster. No, I say that I have no knowledge of doing it. I
don't remember doing it.
The CiiAiR^rAN. If you did do it, how did you expect to reimburse
the union ?
Mr. Brewster. Out of my own account.
The Chairman. When ? In other words, if it hadn't been for the
work of this committee, you would have never known you had done it,
would you ?
Mr. Brewster. Oh, yes, I would.
The Chairman. How would you have found out ?
Mr. Brewster. Before this committee came into action — I tried
to explain the other day. I think it has been a little misrepresented or
understood, maybe. Before this is over, I will prove that I don't owe
1 dime.
The Chairisean. We have given you the opportunity here now.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1127
Mr. BitEWSTER. I tun <r()int>: to liuve an <)j)i)()i'tiinity — Mr. Senator
McClellan, please.
The Chairman. All right.
Mr. Brewster. The opportnnity that I have had has been under
interrogation. It hasn't been an opj^ortuiiity to sit down and really
try to fathom it and work on it, and so forth.
The Chairman. No, sir, but you have had the oi)portunity ever
since the bills were incurred.
Mr. Brewster. I have had that, and I have told you that by the
first of the month I am going to have a man that is going through the
entire subject matter and bring these people in, all that you have got
statements from and so forth, and have them cheeked thoroughly, I
have a warranty deed for everything 1 own. Befoi-e that, it was every-
thing I owed to the westei'n conference has been my mortgages and so
forth. I am paying interest on them, o and :U/^ percent, and I have the
warranty deed, and I have ah'eady set up where the western con-
ference ap])oints an aj^praiser, I a})point 1, and the '2 of them appoint
an impartial one.
The Chairman. How does that affect these bills ?
Mr. Brewster. That will all come in there on anything that I owe.
I don't care what it is. I will absolutely prove to you within a period of
60 days that this picture will change considerably, and I would like to
have the opportunity to see you personally Avhen it is over and talk
to you about it.
The Chairman. Well, the Chair has no objection granting you a
conference whenever you are ready. In the meantime. I cannot defer
these hearings.
Mr. Brewster. I don't expect that.
The Chairman. The point is — —
Mr. Griffin. Mr. Chairman ?
The Chairman. Just one moment.
The point is the Chair is trying, the connnittee is trying, to find out.
to get your explanation, if you have any, of these records that we have
finally been able to get. Your records have been destroyed, and it is
very difficult. But if we can get up tliese things without your records
and go into the banks, and go around and make these contacts, with
the limited opportunity we have to do it in, it raises some very strong
suspicion as to what the records would show if you had them here avail-
able. Do you not agi-ee ?
(The witness conferred with his counsel.)
The Chairman. You agree, do you ? That is the kind of operation,
management, bookkeeping and system that the teamsters union appeai-s
to have, is that not correct?
Mr. Brewster. It isn't good. I would say that.
The Chairman. I know it isn't good. We all know that it is not
good. I will just observe one other thing. You said you were paying
three or three and a half percent interest. Do you not feel in view
of Mr. Beck's statement the he borrowed thi-ee or four hundred thous-
and dollars without paying any interest, that you are being discrimi-
nated against a little ?
Mr. Brewster. Please don't get into Mr. Beck now. I have enough
trouble myself.
The Chairman. All right. We will defer that.
1128 IMPROPER ACTIVITIES IX THE LABOR FIELD
Proceed, Mr. Counsel.
Senator Mundt. Mr. Chairman ?
The Chairman. Senator Mundt.
Senator Mundt. Mr. Brewster, you said that your statement about
employing an auditor and your intention to pay back all of the money
tliRt you might have used from teamsters' funds for personal loans,
might have been misunderstood or misinterpreted by this committee.
I have a few questions I would like to ask you in that connection which
I think will help you make the record clear. As I understood the pic-
ture, you told us that about last October you had decided to employ an
auditor to go over all the records and accounts to determine how much
money you might have used for personal purposes out of union funds,
and that you were then going to make a complete restitution of any
funds that he so found, and that your auditor was going to go to work
about the first of April. If I understood you further, you said that you
were going to seek changes in the constitution of tlie international or
Western Conference, or both, to establish an auditing control over
accounts of this kind.
I presume that the purpose of that audit control would be to make
it less likely that this kind of expenditure would occur in the future.
Have I correctly interpreted your position so far ?
Mr. Brewster. That is absolutely correct.
Senator Mundt. Xow let me ask you some questions which are not
going to test your memory or seek your records, but are going to give
you a chance to make your position crystal clear.
Do you believe with me, Mr. Brewster, as a good union policy, let
us say, do you believe that it would be good and proper union policy,
for union officials to use union dues for other purposes and activities
than those which are beneficial to union members ?
Mr. Brewster. I do not think so.
Senator Mundt. You do not. Do you think that such a use of union
funds, which, of course, to the extent that they are used in that way,
have their impact on higher than necessary union dues, do you think
that such use by union officials of union funds is desirable ?
Mr. Brewster. I dont think it is.
Senator Mundt. Do you think it is appropriate ?
Mr. Brewster. No, I don't.
Senator Mundt. Do you think it is proper?
Mr. Brewster. No.
Senator Mundt. Would you agree with me, then, that union dues
paying members are entitled to protection against such expenditures
from their fund ?
Mr. Brewster. I certainly do.
Senator Mundt. And I presume your purpose in seeking these con-
stitutional changes moves in that direction?
Mr. Brewster. That is true.
Senator Mundt. Then I ask you, would you support, Mr. Brewster,
legislation which would provide for making certain that there is a total
disclosure to union members of all the expenditures made by union
officials of their funds?
Mr. Brewster. I cannot see anv harm in it.
I don't
IMPROPER ACTIVITIES IN THE LABOR FIELD 1129
Senator Muxdt. It might not be necessary, but would you
Mr. Brewstek. By legislation, can I explain that?
Senator Mundt. Yes. We are talking about the meat in the coconut.
Mr. Brewster. Yes. On certain parts of legislation, when it refers
to that, I haven't any objection on it, but I just wonder how much
further the legislation is going to go, and it is probably going to go to
a point that it is going to hurt unions a little bit more in sometlung
else tliat they think of. They think ''Well, this is all right."
Senator ^Muxdt. Let us stick to the specific things that you and I
have been talking about.
Mr. Brewster. If it is confined to that, Senator— —
Senator ^Iundt. I can agree, of course, that you can use this as a
club to hurt unions. I do not want to do that. But up until now,
you and I have agreed that the union member is entitled to complete
])i'Otection against the diversion of his funds for nonunion i3urposes.
Mr. Brewster. First let me say this.
Senator Mundt. Wait a minute. We have agreed that far, have v/e
not ?
Mr. Brewster. We have agreed that far.
Senator Muxdt. Now go ahead and say what you want to say.
Mr. Brewster. I think that — I honestly think that labor can do the
job itself. I have not put in enough time, probably, on this certain
issue to probably reach a solution.
Senator Muxdt. There is no question, of course, that it is possible
that labor can do the job itself, but it is also true, as you have ad-
mitted, and I commend you for your candor, that as a union official that
believes that such diversion of union funds is improper, that at times
you, yourself, have been careless and have made such diversion, and
you propose to make restitution. It is entirely possible that if a man
who believes, as you say you do, that such diversion is improper, that
some other union official could also make the diversions and not feel
it is improper. So the union member is entitled to safeguards. He
is the fellow we are thinking about now.
I would assume that you would agree with me that legislation di-
rected solely to the goal of safeguarding the funds that the union
member pays against improper diversions by union officials, would
be appropriate legislation which you would support. Am I right or
wrong ?
Mr. Brewster. Certain types of it, yes. I certainly
Senator Mundt. We are limiting it now. I want to get that clear.
Mr. Brewster. All right, if it is absolutely limited to that, that is
fine. But how it is being done, and so forth
Senator Mundt. Would you think that this would be reasonable,
that the books of the union should be audited periodically by outside
C. P. A.'s, certified public accountants?
Mr. Brewster. I absolutely do.
Senator Muxdt. That is what I am talking about. And that it
would provide what your constitution now fails to provide, certain
areas in which it is perfectly proper for union officials to expend
money. I would concur with you that entertainment of einployers,
people of that kind, would be as appropriate for union officials to ex-
pend as it is for corporations to spend entertainment funds for their
prospective customers. I am not trying to hamstring you, but I am
1130 IMPROPER ACTIVITIES IX THE LABOR FIELD
trying to preclude the kind of thing that we have been talking about
this morning, if it did occur.
I will go a little further to another field. Do the teamsters have
a pension and welfare fund ?
Mr. Brewster. Yes, we do.
Senator Mundt. Is that separate from these fimds that we have
been talking about today, or is it all wrapped up in one general treas-
ury ?
Mr. Brewster. Just as separate as I am from this committee.
Senator Mundt. Would you concede that pension and welfare funds
are entitled to even tighter safeguards than ordinary union funds?
As I understand pension and welfare funds, if they are not kept in-
violate, some old or aging or unemployed or crippled teamster might
find himself at the end of his career depending upon a pension or a
welfare check which could not be forthcoming if the funds were dis-
sipated. So these should be kept pretty inviolate, should they not,
the pension and welfare funds ?
Mr. Brewster. You can't make laws too strong, in my opinion, to
protect that.
(At this point. Senator Ives withdrew from the hearing room.)
Senator Mundt. Would you agree with me that it is as important
to have adequate laws protecting pension and welfare funds for the
union-dues-paying members as it is to have appropriate legislation
to protect the depositors in national banks, or the people who carry
insurance policies in great national life insurance companies?
Mr. Brewster. That is right. I think — can I say something?
Senator Mundt. Surely.
Mr. Brewster. I think if you check, and I think you would get
some of the brighter things that happen to Frank Brewster
Senator Mundt. I want to get the whole picture.
Mr. Brewster. — if you would check our health and welfare, you
would find that it is second to none in the United States. That means
the world.
Senator Mundt. You are, of course, familiar, sir, with union legis-
lation and unions, better than I am, because you have been in the union
a long time, and I am just a reluctant prospective teamster member,
as I told you the other day. Perhaps you can tell me what Federal
laws now are in o])eration as far as welfare and health and pension
funds are concerned, or is that left to the good judgment and integrity
of union officials?
Mr. Brewster. I don't believe that there is any that I know of that
probably will protect them in its entirety. But I want to say that
also
Senator Mundi'. I am not making any charges tliat your funds have
been dissipated. I am simply asking you whether human beings do
not differ a great deal whether they happen to be in one location or
another. You have honest people and you have scamps in all walks
of life. They come and go. I would think, therefore, that the fellow
who depends on a pension or liealth or welfare fund has a right to ex-
pect his Government to interest itself in protecting the sanctity of
those funds. I am seeking from you counsel as to whether or not
you, as one of the leading union officials of this country, would support
legislation directed to that specific purpose.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1131
Mr. Brewster, I think so. I want to
Senator Mundt. Let us not f^uess. Would you really do it ?
Mr. Brewster. Sure.
Senator Mundt. Wholeheartedly, enthusiastically, firmly ?
Mr. Brewster. Absolutely.
Can I explain a little further my ideas ? I think you could write
a law that would be drawn from the way we handle it in the western
part of the country, and it would be just about as f(ood as any law
that you could o;et. On the pension, we have a contract with Pru-
dential. There is not one ])enny of that that is handled through any
member of the teamsters union. It all goes to the Prudential. The
surplus — the reserves, rather — we have a contract with them. We do
not invest it, we do not t^amble with it, we don't do anj^thing but good
sound investment. We have a contract for 21/^ percent.
At the present time I think it is paying 3.34. That is done so that
there will be no chance for any of those funds to be gone out and get
rich quick, to probably make more, because in my opinion tliat has to
be safe.
Senator Mundt. Let me ask you this. I am not asking you to in-
ject yourself into the troubles which may or may not lie ahead of
Mr. Beck. I recognize that you do not want to get into that.
Mr. Brewster. Please don't.
Senator Mundt. But making an assumption, assuming that what
Mr. Beck said on the television program is correct, and I would assume
that it is, that he had borrowed three or four hundred tlionsand dollars
from the teamsters and paid it back, would that be from pension and
welfare funds, or from other funds ?
Mr. Brewster. It would have to be from other funds, as far as we
are concerned.
Senator Mundt. It could not be out of this ?
Mr. Brewster. Not out of ours. Not 1 penny can be borrowed out
of it.
Senator Mundt. You are aware, of course, that the Federal law
])rovides, for national banks and insurance companies, certain kinds
of investments which can be made and certain kinds which cannot be
made.
Mr. Brewster. That is right.
Senator Mundt. And that a national bank or an insurance company
could not invest, certainly, in a racetrack, or a personal loan, or things
of that kind, without certain types of security. My point is that it
seems to me that the union member^is entitled to Federal legislation
which would protect him as fully as the depositor in a national bank,
and as fully as the purchaser of insurance in a national life-insurance
company.
I am seeking from you a categorical answer, if I can get it: Do you
or do you not agree with me on that ?
Mr. Brewster. You are speaking of health and welfare and pen-
sions?
Senator Mundt. That is correct.
Mr. Brewster. Absolutely, I do. I have no objection.
Senator Mundt. O.K.
Senator McNamara. Mr. Chairman ?
The Chairman. Senator McNamara.
1132 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McNamara. I would like to ask a few questions along this
same line. Do we not now have a requirement in the Federal law to
report all receipts and expenditures of union funds ?
Mr. Brewster. Yes, we have.
Senator McNamara. Do I understand from the answer you gave
to a question of Senator Mundt that you think they are not sufficient,
that we should have further Federal laws ?
Mr. Brewster. Xo, I didn't think tliat that was the type of answer
that was made. 1 thought that a further breakdown, and so forth, of
expenses should be made. That is what I took to be his question.
I didn't take it as an overall picture. I thought maybe he meant more
of a breakdown.
Senator Mundt. Your understanding was correct.
Senator McNamara. In the dealing of the other area of health and
welfare funds, I understand some health and welfare funds are jointly
administered by the employer and the employee.
Mr. Brewster. Right.
Senator McNamara. Some are handled either by the employer alone
or by the employees alone. What is the situation in your fund in the
area that you are dealing with in health and welfare funds? Are they
jointly administered ?
]\Ir. Brewster. A hundred percent jointly administered. Senator.
Senator McNamara. B}^ a committee of how many ? Do you know :■
Mr. Brewster. I^t me say first, the pension consists of a commit-
tee, I think, of 12 at the present time, on each side, and it can be ex-
tended if we take in other industries. This is something new, as you
know. Senator. We try and have a representative from each industry,
such as building trades, and the food industry, milk and et cetera.
We intend, and it is our purpose, and it has been drawn up to the point,
that every employer, associationwise, in the 11 Western States, will
have a representative on it.
By the same token, we have a representative to match.
On the health and welfare, we started that in making separate plans
in different areas and so forth. I think we have something like SO
some plans, and they have from — I think usually it is 2 from each
side and sometimes as manj" as 3 from each side.
Senator McNamara. You are talking about the local union level '.
Mr. Brewster. Yes, that is right.
Senator McXamara. And then do they all consolidate in one plan
under the Western Conference of Teamsters I
]Mr. Brewster. On health and Avelf are ? Xo, they do not. Thev
have different ■
Senator McXamara. Then answer this : Does the Western Confer-
ence of Teamsters enter into health and welfare plans in any manner
except to recommend and approve to the local union?
Mr. Brewsi-er. That is right. That is all.
Senator McXa3Iara. Then there is no joint fund covering all of
thefi
area
Mr. Brews'J'er. Xo, there isn't in health and welfare.
Senator McXamara. They are liaudled in various ways, depending
on the arrangement worked out between the employer and the em-
ployees at the local union level ?
IMPROPER ACTIVITIES IX THE LABOR FIELD 1133
Mr. Brewster. It is done, but it has to be approved by the Western
Conference, yes, sir.
Senator McNamara. But as far as the funds are concerned, the
Western Conference does not enter it, except to recommend to the local
union ?
Mr. Brewster. That is right. That is right.
Senator McNamara. The funds are actually held in trusteeship, and
you indicated are held by the Prudential Life Insurance Co.?
Mr. Breavster. Xot in the
Senator McXamar^v. On the pension.
Mr. Brewster. On the pension in Prudential, yes, sir.
Senator McXamara. How about the others ?
Mr, Brewster. The others are in different localities put in different
banks, and they also can only be put in national banks. We can't buy
debentures or anything else with them.
Senator McXamara. If there are any fees accruing from the placing
of the business, as there are in insurance companies generallv, where
would those fees go ?
Mr. Brewster. They would go back into the trust fund.
Senator McNamara. Thank you.
Mr. Brewster. I want to say this, too, that in our pension plan, there
is only 1 percent for the operation of the pension plan, to keep all
recorcls and everything, and there is only four-tenths of 1 percent that
is paid in commissions.
Senator McNA:\rARA. Is this fund created by contributions from the
employer only, or does the employee make a contribution?
Mr. Brewster. The employer only.
Senator Goldwater. Mr. Brewster, who is authorized to write
checks on the welfare fund ?
Mr. Brewster. Only the people that are designated by the trustees.
Senator Goldwater. Do ^you happen to be one of those ?
Mr. Brewster. In some instances I am. And with an employer.
There is always an employer and a union member.
,..•, Senator Goldwater. You cosign with an employer ?
■ Mr. Brewster. I have cosigned, yes.
Senator Goldwater. Would those checks be signed by machine ?
Mr. Brewster. Yes, tliey Mould.
Senator Goldwater. Who lias the authority to authorize them to be
written?
Mr. Brewster. Can I explain this a little more?
Senator Goldwater. Who has the authority to operate that ma-
chine?
,, Mr. Brewster. The machine, as I said the other day, my secretary.
'" Senator Goldwater. That comes under your jurisdiction?
jNIr. Breavster. Yes.
Senator Goldavater. How about the signature of the employer
repi-esentative?
]Mr. Breavster. Well, I don't know about him.
Senator Goldavater. Is his plate carried in your office ?
Mr. Breavsit:r. Xo.
Senator Goldavater. You haA'e to use a machine to sign your name
and then send the check to him for his signature ?
]N[r. Breavs'it:r. That would have to be it.
1134 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Goldwater. Is that the way it works ?
Mr. Brewster. Let me explain.
Senator GoLDWATER. No. Is that the way it works ?
Mr. Brewster. I don't know what checks you are talking about.
Senator Goldwater. I am talking about checks drawn on the wel-
fare funds.
Mr. Brewster. For benefits ?
Senator Goldwater. Yes. For any purpose.
Mr. Brewster. For benefits, no, the benefits are drawn by an admin-
istrator of tlie fund, and he signs the check for benefits. In other
words, they get a bill, that bill is checked thoroughly, it goes through
the procedure of seeing whether it is a proper bill, we check and so
forth, and then that man sends out the check himself from that office.
Senator Goldwater. Are yoU an administrator ?
Mr. Brewster. No, sir.
Senator Goldwater. You asked the question of me of what uses.
Are there other uses of the welfare fund rather than paying for the
purposes of the welfare fund ?
Mr. Brewster. No. I didn't understand that I said that.
' Senator Goldwater. I thought you did.
Mr. Brewster. How did I say that ? I don't remember it.
Senator Goldwater. You said it that plain, that there were other
purposes. Can you draw money on this fund for any other purposes
than the payment of welfare funds?
Mr. Brewster. Not 1 penny.
Senator Goldwater. So what purpose does it serve to have you have
the ability to sign checks on the welfare fund ?
Mr. Brewster. I was trying to get to that. If you will let me, I
will
Senator Goldwater. All right.
Mr. Brewster. I will take a shortcut. That is just in the case that
we have a surplus and we feel that it should be put in the bank and
drawing some interest. Then that is made out in that way. It isn't
anything that calls for any immediate action. That is done by a meet-
ing of the trustees, and they say, "Well, we have a surplus," we will
say, "of $100,000. I don't think we need a surplus of over half that
much. We should put $50,000 in a certain bank," and so forth, and
we agree on the banks that we put it in. Then in that event, then we
would make a check out to the bank for that account.
Sena<-or Goldwater. And you would sign it ?
Mr. Brewster. Yes, sir ; and an employer.
Senator Goldwater. But the signatures could be machine signed?
Mr. Brewster. It could be, but those certain checks, I don't think
it is necessary, because they would be done right after the meetings,
and so forth, but if it had to be done and I was out of town, and I
O. K.'d it and the minutes of the meeting showed that, I think that my
check signature on the machine would be ample.
Senator Goldwater. Are not most of the teamster checks machine
signed ?
Mr. Brewster. No, they are not. Senator Goldwater ; they are not.
In fact, there are very few. One of the reasons that I had the machine
made out was I was signing several hundred checks when I would
IMPROPER ACTIVITIES IN THE LABOR FIELD 1135
come into town, and I would have to hold meetings and talk to people
while I was signing checks. It was to expedite things.
Senator Mundt. Following up on this surplus, where does this sur-
plus accumulate before you put it in the bank ?
Mr. Brewster. How does it accumulate? It accumulates on good
experience with the fund itself. There are many funds that have
good experience, and there are many funds that have bad experience.
Y ou take a large fund. It has good experience because it takes the over-
all picture. You take an organization with, we will say, 500 people,
and usually the experience is bad. What we are working on now is to
consolidate all funds so that they can get together, and the good ex-
perience will, I think, prevail overall.
Senator Muxdt. I got lost someplace in the picture, Mr. Brewster.
I thought in connection with your responses to Senator McNamara that
each local union made its arrangement with its employer for a pension
and welfare contract, and that the employer paid the money, and that
you came into the picture only in recommending the kind of contract
which you thought was good, and in finally approving them.
Mr. Brewster. There are two different questions. The pension is
that way, and the health and welfare is done by local unions, because
it is in the local contract. It becomes part of the local contract. All
of these people, in order to make it legal and so forth, have to sign a
short form.
Senator Mundt. Let us stick to the health and welfare. There are
two funds ?
Mr. Brewster. Yes.
Senator Mundt. We will talk about health and welfare. The health
and welfare is strictly a local proposition. You enter into it only to
recommend and to approve ?
Mr. Brewster. That is right.
Senator Mundt. The funds that accumulate under the health and
welfare program, do they ever come into your jurisdiction? Do you
ever sign any checks in connection with them ?
Mr. Brewster. As I explained, only to the point that I am on some
of the trustees. In fact, I was on the first one that put it into effect
in the 11 Western States. So I am on the trustees as one of the
trustees, and then there is a signator from the employers part of it.
Senator Mundt. You are a trustee for a local union ?
Mr. Brewster. Yes, sir. For an association, we will say, or prob-
ably an industry.
Senator Mundt. How many trusteeships of that kind do you hold ?
^v. Brewster. Trusteeships?
Senator Mundt. Yes.
Mr. Brewster. In where ? What do you mean ?
Senator Mundt. Well, with these local funds. You said you were
made a trustee of a local fund to sign checks.
Mr. Brewster. No, no, no. I am a trustee of the fund, a board of
trustees that consists of sometimes 5 and sometimes 3. I mean 4 and 6.
Senator Mundt. I am trying to get to the point. We start out with
purely a local situation, and a local union makes a contract, inckiding
health and welfare payments with a local employer. You do not enter
into that at all. They make their own contract. Now, when the pay-
ments are made, they are made by the employer, right ?
89330—57 — pt. 4 3
1136 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. That is right.
Senator Mundt. Aiid to whom are they made ? To this local union
or to your western conference ?
Mr. Brewster. They are made to the insurance companies.
Senator Mundt. You would not be signing any checks for insurance
companies.
Mr. Brewster. No, sir.
Senator Mtjndt. I am trying to figure out how you get to sign any
checks in connection with a purely local operation, which is between
employers and unions.
Now you tell me they make the payment to the insurance company.
Mr. Brewster. I can explain that very easily. The only place that
I sign checks is if I am an officer of that certain local union.
Senator Mundt. Are you an officer of a local
union «
Mr. Brewster. Yes, sir.
Senator Mundt. Of more than one ?
Mr. Brewster. Yes, sir.
Senator Mundt. How many ?
Mr. Brewster. About 4 or 5 under trusteeship.
Senator Mundt. You are an officer of those local unions which are
under trusteeship?
Mr. Brewster. Yes, sir.
Senator Mundt. You are not an officer of any other local union ?
Mr. Brewster. Well, I am an officer of 1 local union that is not in
trusteeship, and then I am an officer of either 4 or 5 — I don't know
whether it has been taken out of trusteeship yet.
Senator Mundt. What happens to the pension plan ? You say that
is handled differently. Explain that.
Mr. Brewster. The pension fund is a western conference pension
fund that is a uniform plan for every member of the truck drivers*
organization, some 375 in the 11 Western States. We have at the
present time in excess of 150,000 that come under it.
Senator Mundt. Who pays for that ?
Mr. Brewster. The employer.
Senator Mundt. Does the employee contribute to it ?
Mr. Brewster. No, sir.
Senator Mundt. The employer only. He pays the money to the
Western Conference officers ?
Mr. Brewster. No.
Senator Mundt. Where does he pay ?
Mr. Brewster. The checks are paid so that we can check through
the western conference office in the areas, so that we can check with
the membership to see if the checks are right. But they are made
out to the Prudential Life Insurance Co.
Senator Mundt. Each employer, then, makes out his pension check
payable to the Prudential Life Insurance Co. ?
Mr. Brewster. Yes, sir.
Senator Mundt. He does not make it payable to you ?
Mr. Brewster. No.
Senator Mundt. He sends it to you, and you simply submit it to the
Prudential Co. ?
Mr. Brewster. That is right, after we check whether the amount
agrees with the amount of people employed, and so forth, and we
keep those figures, and then it goes into their office.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1137
Senator Mundt. So at no stage of the operation, either in health
and welfare or in pensions, are the funds ever comingled with your
general union funds collected from dues-paying members?
Mr. Brewster. It is a separate building, a separate administration.
I believe that the investigators were around and took a light look but
didn't go through very further. I wish they would take a better look.
Senator Mundt. This, I understand, is done by the determination
and decision of the Western Conference and not in response to any
Federal law, and other unions have their own systems for pension,
funds?
Mr. Brewster. That is right, I think.
The Chairman. All right, counsel.
Mr. Kennedy. Mr. Brewster, I would like to go back to your in-
terest in horses and horseraces, horse tracks. You purchased or there
was purchased with western-conference funds certain boxes at the
various racetracks around on tlie west coast, is that correct ?
Mr. Brewster. There was, yes.
Mr. Kennedy. How many boxes do you think you purchased at the
various racetracks in a period of a year ?
Mr. Brewster. Well, I believe that there is one at — do you mean at
the ditferent tracks ?
Mr. Kennedy. Yes.
Mr. Brewster. Or how many at a track ?
Mr. Kennedy. At the various tracks. What tracks have you pur-
chased boxes at \
Mr. Brewster. On practically all of them but my own hometown,
and I purchased that myself.
Mr. Kennedy. But all the others were purchased with Western
Conference funds ?
Mr. Brewster. Yes, it was.
Mr. Kennedy. How many racetracks would that involve?
Mr. Brewster. Well, there are 1, 2, 3, 4, 5 — 6, I believe. Maybe
not that many. Maybe we didn't — that is how many tracks there are.
Mr. Kennedy. We have a check here for February 10, 1954, to the
California Jockev Club for $200. April 13, Hollywood Turf Club,
$240; September 7, Tanforan Turf Club, $75; October 5, Golden Gate
Turf Club, $lpO: October 5, Golden Gate Fields, $225; December 1,
Los Angeles Turf Club, $390 ; making a total of $1,280 for the year
1954.
Mr. Brewster. How many tracks are there ?
Mr. Kennedy. Six. You are right.
Mr. Brewster. One question I got right.
The Chairman. The Chair presents to you the checks referred to by
counsel, photostatic copies of them. See if you identify them, please,
( Documents handed to witness.)
The Chairman. They all appear to have been signed by you as an
official of the Western Conference of Teamsters.
(The witness conferred with his counsel.)
Mr. Brewster. They are all in order.
The Chairman. All right, those checks will be made exhibit 71-A,
B, C, D, E, and F.
(Tlie documents referred to were marked "Exhibits 71-A, 71-B,
71-C, 71-D, 71-E. and 71-F" for reference and will be found in the
appendix on pp. 1395-1400.)
1138 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. On February 10, 1955, the Golden Gate Fields, $225 ;
the same date, February 10, 1955, the Golden Gate Turf Club, $150;
June, Delmar Turf Club, $180; August, California Jockey Club, Bay
Meadows, $200 ; November, Tanf oran Turf Club, $75 ; December, the
Los Angeles Turf Club, $560 ; making a total of $1,390, and the total
for 2 years for boxes at racetracks $2,670 out of union members' dues.
The Chairman. The last checks referred to by counsel will now be
presented to the witness for identification.
(Documents handed to witness.)
Mr. Kennedy. That is just for those 2 years, Mr. Chairman.
(The witness conferred with his counsel.)
Mr. Brewster. Those are in order.
The Chairman. They will be made exhibits Nos. 72-A, B, C, D, E,
andF.
(The documents referred to were marked "Exhibits 72-A, 72-B,
72-C, 72-D, 72-E and 72-F" for reference and will be found in the
appendix on pp. 1401-1406.)
Mr. Kennedy. Was there any arrangement in the union for union
members to come in and use those boxes ?
Mr. Brewster. A lot of union members used them.
Mr. Kennedy. What kind of an arrangement was it so that a union
member who came by could use that box ?
Mr. Brewster. All there had to be was a seat vacant.
Mr. Kennedy. Did you send out a letter to all union members?
Mr. Brewster. No, I didn't send out a letter.
Mr. Kennedy. What was the procedure followed for union mem-
bers?
Mr. Brewster. The procedure was they would ask inyself or ask
the trainer. I left the passes and so forth with the trainers, so that
if any miion member asked, or any employer asked, or if I sent any
employer, if an employer asked me, and there were many, many em-
ployers that sat in those boxes when we were down for conferences
and so forth. That was a general procedure. They wanted to go to
the races, and they asked me and I had the boxes for them.
As far as myself is concerned, I think that people try to think that
I am around the racetrack all the time, which I am not. I do my
work. I don't occupy those boxes as much as probably somebody
would make you think.
Mr. Kennedy. Any teamster member could come to the track?
Then what would he do, come up and say, "I am a teamster, can I get
into Frank Brewster's box" ?
Mr. Brewster. Yes, he might do that, and I think he would get in
there, if there wasn't somebody already sitting in it, some other
teamster.
Can I explain ? I don't know why you didn't get this one, but we
got a baseball
Mr. Kennedy. Wait.
Mr. Brewster. Maybe I shouldn't give you too many leads. You
got too many now.
,. But we have a baseball box that we have had for 20 years in the city
of Seattle, and it is made out, you know, that my secretary gives out
the tickets at night. Many, many a time I had to go out and go and
get a seat myself some other place. Unless I got out real early I never
1]\IPR0PER ACTWITIES IN THE LABOR FIELD 1139
got a seat. And they were full of teamster members. If we had ad-
vertised it, I think there would have been a riot.
Mr. IvENNEDY. What about the Los Angeles Turf Club? Can any
teamster in the Los Angeles area come out and get a seat in the box ?
Mr. Brewster. If there was one vacant, you bet he could.
Mr. Kennedy. Was that understood among all teamsters in Los
Angeles ?
Mr. Brewster. We didn't send a bulletin out to that effect, because
if we had there would have been a riot.
Mr. Kennedy. And the Hollywood
Mr. Brewster. The same on all of them.
Mr. Kennedy. Did they know that you had those boxes and that
they would be welcome ?
;Mr. Brewster. By the amount of people that asked me, I think
they all knew it.
Mr. Kennedy. Amongst the teamsters generally, they knev>^
Mr. Brewster. That I had boxes there, and that if there was a seat
vacant, it was there.
Mr. I^NNEDY. AndDelmar?
Mr. Brewster. Sure. We have a big membership in Delmar.
Mr. KJENNEDY. And they are welcome to come to the box ?
Mr. Brewster. You bet they are. I like their company.
Senator Mundt. Business is likely to pick up after these hearings.
Mr. Brewster. Well, maybe the track will like it, too.
Senator Goldwater. How big a membership do you have in Delmar ?
Mr. Brewster. In San Diego?
Senator Goldavater. I thought you said Delmar.
Mr. Brewster. Well, it is a part of the San Diego membership. In
Delmar proper?
Yes, we have members of the teamsters union that are employed at
Delmar, I think, that would reach at about 350. I am making a
rough guess, but I think that is what they would have to employ from
our jurisdiction. You see, we haul all the feed in and then when it
becomes manure we haul it out, and we check all of the gates, and we
have the people, the users, et cetera.
Senator Goldwater. Do you have a local in Delmar?
Mr. Brewster. Not a local, but we have a representative that checks
Delmar daily. ^
Mr. Kennedy. I would like to ask you if you would identify this
check for me, paid to the order of local 174, special fund, for $4,000.
The Chairman. The Chair presents to the witness a photostatic
copy of a check and asks him to examine it and see if he can identify it.
(Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. Do you want to know
Mr. Kennedy. Do you identify the check?
Mr. Brrewster. Yes, I identify the check.
Mr. Kennedy. Your name appears on it?
Mr. Brewster. Yes.
Mr. Kennedy. Would you give the committee the names that appear
on it?
Mr. Brewster. C. O'Reilly and F. W. Brewster.
Mr. Kennedy. What was the date of the check?
1140 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. February 27, 1951. It looks like it could be 1911,
but that is a little too far back.
Mr. Kennedy. What?
Mr. Brewster. 1951, I believe. It looks like that.
Mr. Kennedy. What was your position at that time?
The Chairman. Wlio was the check made payable to ?
Mr. Brewster. "Local 174, special fund."
Mr. Kennedy. What was your position at that time, in 1951 ?
Mr. Brewster. I was secretary-treasurer of 174.
Mr. Kennedy. Of local 174?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Local 174 is in Seattle, Wash.
Mr. Brewster. It is.
The Chairman. That check may be made exhibit 73.
(The document referred to was marked "Exhibit No. 73" for refer-
ence and will be found in the appendix on p. 1407.)
Mr. Kennedy. Would you tell us about that check? Did you
authorize the issuance of that check?
Mr. Brewster. What do you want to know about the check ?
Mr. Kennedy. Did you authorize the issuance of that check ?
Mr. Brewster. I did.
Mr. Kennedy. You did?
Mr. Brewster. Yes.
Mr. Kennedy. What was the purpose ?
Mr. Brewster. I don't know that particular check. Wait a minute.
I know what the special fund was.
Mr. Kennedy. What was the purpose, first, of that check ?
Mr. Brewster. That was for political funds.
Mr. Kennedy. For political funds ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. How was that to be spent, that $4,000 ?
Mr. Brewster. To be spent on candidates. C. O'Keilly was in full
charge, authorized by the executive board.
Mr. Kennedy. What was he supposed to do with the money ?
Mr. Brewster. At that time, we gave all political donations, State,
local, and county, in cash, and O'Reilly was the one that put out
the cash.
Mr. Kennedy. Is there anything in your books to indicate to whom
that money went ?
Mr. Brewster. No, there isn't.
Mr. Kennedy. What would prevent Mr. Claude O'Reilly or Mr.
Frank Brewster taking the $4,000 and sticking it in their pocket?
Mr. Brewster. Because I don't believe they are that kind of people.
Mr. Kennedy. What would prevent Mr. Frank Brewster taking the
$4,000 and using it to purchase or pay for some of his personal bills ?
Mr. Brewster. That never was the purpose, and that has always
been handled that way, and we have changed that entire system in
about the middle of 1953.
Mr. ICennedy. Did you make any accounting to anyone in your
books as to how you spent the money ?
Mr. Brewster. I don't remember any accounting on it.
Mr. Kennedy. Can you give us or give the committee any account-
ing as to whom this money went from this special fund ?
IMPROPER ACTIVITIES IN THE L.\BOR FIELD 1141
Mr. Brewster. No, I can't.
Mr. Kjinnedy. Is there such a thing as a special fund? Is there
such a fund as a special fund in the bank, or any place ?
Mr. Brewster. I believe there was.
Mr. Kj^nnedy. Well, Mr. Brewster, we have checked and found
that there is no such fund as a "Local 174, special fund" in the bank.
It does not exist.
What bank was it in ?
Mr. Brewster. I thought it was in the Seattle First National.
Mr. Kennedy. We have checked and they state that there is no such
account as the "Local 174 special fund."
Mr. Brewster. That is in 1951, isn't it ?
Mr. Kennedy. Yes. We asked for that, 1951.
Well, now, out of that fund, Mr. Chairman, from the years 1950
through 1953, there came $99,999.65.
The Chairman. How much ?
Mr. Kennedy. $99,999.65.
Can you give the committee any explanation as to how any of that
money was spent ?
Mr. Brewster. I cannot, because I did not handle it.
Mr. Kennedy. You were the secretary -treasurer ?
Mr. Brewster. I was the secretary-treasurer,
Mr. Kennedy. You signed the checks ?
Mr. Brewster. I signed the checks, but O'Reilly had full authority
to handle all of that money.
Mr. Kennedy. You cannot give this committee any explanation as
to how just under $100,000 was spent for the years 1950 through 1953,
Mr. Brewster ?
Mr. Brewster. I cannot. But I would like to see the figures so that
I could
Mr. Kennedy. Will you deny that any of that money was spent
to pay your personal bills or to make a downpayment on any of
your homes, or any of the furnishings in your homes?
Mr. Brewster. I do not — I have not at any time received any of
that money for my personal use.
Mr. Kennedy. Was any of that money spent to pay any of your per-
sonal bills ?
Mr. Brewster. No; none of that money was made to pay my per-
sonal bills.
Mr. Kennedy. You are absolutely sure of that ?
Mr. Brewster. As sure as I can remember.
Mr. Kennedy. Would you not remember if money was coming out
of the union funds to pay your personal bills ?
Mr. Brewster. I presume I would.
Mr. Kennedy. Will you deny that that $4,000 check that I just
showed you was not used to pay some of your personal bills?
Mr. Brewster. I would not deny it or affirm it. I don't know what
you are leading up to, but if you will tell me, maybe I can help you.
Mr. Kennedy. I will try to.
The Chairman. Let us get it in a proper perspective. Over what
years was this account, this special account, funds withdrawn to the
amount of $99,999.65?
1142 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. From June 1950, Mr. Chairman, to November 1953.
The Chairman. Is that record taken from the bank's records ?
Mr. KJENNEDT. These are from the records that have been made
available, Mr. Chairman, from local 1Y4.
The Chairman. Local 174.
Mr. Brewster. Is it not a much longer time than that ?
Mr. Kennedy. "VYe could not get the records for the rest of the
time, I believe.
The Chairman. How long has this special account or special fund
been in existence ?
Mr. Brewster. It is not in existence since 1953.
The Chairman. Since when?
Mr. Brewster. Since 1953.
The Chairman. Prior to 1953 how long was it in existence, if it
ever existed ?
Mr. Brewster. I would say, roughly speaking, about 10 years.
The Chairman. About 10 years. Was approximately the same
amount drawn out for the other periods as for this period, for 1950 to
1953, in the amount of $99,999.65 ?
Mr. Brewster. No ; I don't think so. Those figures — I don't know
what checks or figures they got them from. I am going to have to
recheck that one. too.
The Chairman. This somids like a lot of money for working people.
Do you mean you cannot give any accounting of this money, where it
went?
Mr. Brewster. That was handled by Claude O'Reilly.
The Chairman. I know, but you were secretary and treasurer.
You are supposed to know where it goes. Do you mean to say you
did not know ?
Mr. Brewster. I did not know.
Mv. Kennedy. I might say, Mr. Claude O'Reilly is dead now; is
that right?
Mr. Brewster. Yes ; he is dead now.
Senator Mundt. Is it your position, Mr. Brewster, that all $99,000
of this was spent for political purposes in Seattle ?
Mr. Brewster. And the State of Washington.
Senator Mundt. $99,000. That is just one campaign year, I pre-
sume, 1951 to 1953. You spent $99,000 in the State of Washington for
political purposes in the campaign of 1952 ?
Mr. Brewster. It sounds like a big figure, but spread over every-
body that knocks at your door, it isn't too much.
Senator ^Iundt. Do you support everybody who knocks at your
door ?
Mr. Brewster. Most everyone. We ride a couple of horses in the
race once in awhile.
Senator j^Iundt. You said you changed the system in 1953. How
did you change it ?
Mr. Brew^ster. I changed it so that there should be either donations
to the individual himself — if he didn't want to take a check, he would
not get any — or through the county committees or the State com-
mittees, or either Republican or Democrat.
Senator Mundt. You mean you changed it so that, instead of
putting the money out in cash, you put it out in check; is that what
you are telling us ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1143
Mr. Brewster. That is absolutely right.
Senator Mundt. Why did you change it ?
Mr. Brewster. Because I didn't think this system was very good.
Senator Mundt. What had you found wrong with it ?
Mr. Brewster. Because there wasn't any special accounting of it.
Senator Mundt. How did j^ou happen to start handing it out in
cash ? Were your candidates disinclined to take a check ?
]Mr. Brewster. You bet they were.
Senator Mundt. They wanted the cash ?
Mr. Brewster. Most of them.
Senator Mundt. Why do you suppose they wanted it in cash ?
Mr. Brewster. Well, they probably didn't want to say they had the
backing of the teamsters, on one hand, and wanted to
Senator Mundt. In other words, they were not supporting you,
were they?
Mr. Brewster. I wouldn't say that.
Senator Mundt. That must have been. They would have found it
out in the report.
Mr. Brewster. I think possibly that they probably didn't want our
names on checks.
Senator Mundt. Well, when they report it, they have to report its
source. If they report it, they have to report it from the teamsters.
Mr. Brewster. That would be up to those individuals, I wouldn't
pass judgment on that.
The Chairman. Mr. Brewster, you have identified a check signed
by yourself and Mr. O'Reilly dated February 27, 1051, payable to the
order of "local 174 special fund," $4,000, drawn on the Seattle First
National Bank.
I hand you another check, a photostatic copy of a check, with the
same date, from the same bank, in the amount of $4,000 made to Palm
Desert Properties Corp., with your initials, F. W. B., written on it,
drawn on the Seattle First National Bank. It appears to be a cashier's
check. Will you examine this check and see if you identify it i
(Document handed to witness.)
The Chairman. Say whether you received that money.
(The witness conferred with his counsel.)
Mr. Brewster. I don't recall this transaction at the present time.
I am going to have to have time to refresh my memory.
The Chairman. You identify that as a check with your initials
on it?
Mr. Brewster. That is a check with my initials on it.
The Chairman. It is the same date as the other one. It is the same
date as exhibit No. 73 about which you just testified ?
Mr. Brewster. Yes, that is the same date.
The Chairman. That check will be made exhibit No. 74.
(The document referred to Avas marked "Exhibit No. 74," for refer-
ence and will be found in the appendix on p. 1408.)
Mr. Kennedy. To whom is that made payable, that check?
Mr. Brewster. Palm Desert Properties Corp.
Mr. Kennedy. Have you had any business transactions with that
corporation ?
Mr. Brewster. Yes. I had a place down there at one time.
Mr. Kennedy. And did you make a downpayment about the same
time that that check was written ?
1144 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. I don't recall when I made the downpayment.
Mr. Kennedy. You do not recall that ? Did you make a downpay-
ment on a home in March of 1951 for $4,000 to the Palm Desert Corp. ?
Mr. Brewster. Made out a check myself ?
Mr. Kennedy. No. That check there.
Mr. Brewster. I don't remember.
Mr. Kennedy. Do you know why you have your initials on that
check?
Mr. Brewster. Initialed the corporation part of it ; yes.
Mr. Kennedy. Can you give any explanation for that check?
Mr. Brewster. Not at the present time. I am going to have to look
and think about it. It is 6 years ago.
Mr. Kennedy. But you purchased a home in Palm Desert at that
same time ?
Mr. Brewster. Yes. I borrowed the money to do it.
Mr. Kennedy. And you made a downpayment of $4,000 ?
Mr. Brewster. I don't know that. I said I would have to refresh
my memory on the entire transaction.
Mr. Kennedy. You do not recall ?
Mr. Brewster. I don't recall the downpayment or anything else.
The Chairman. Did not Mr. C. O'Reilly make the purchase of that
cashier's check for you for this property ? I hand you here another
photostatic document of the purchase application for this certified
check, the cashier's check.
(Document handed to witness.)
The Chairman. Examine that and see if you identify that as his
signature.
(The witness conferred with his counsel.)
Mr. Brewster. I am going to have to check, too, with this.
The Chairman. That is O'Reilly's signature, is it not?
Mr. Brewster. No ; it is not.
The Chairman. Whose is it?
Mr. Brewster. Is it the bank's ?
Mr. Kennedy. It is the name of the purchaser, I believe.
Mr. Brewster. C. O'Reilly.
The Chairman. It shows that it was purchased by Mr. O'Reilly?
Mr. Brewster. That is what it shows here ; yes.
The Chair]man. That may be made exhibit No. 75.
(The document referred to was marked "Exhibit No. 75" for refer-
ence and will be found in the appendix on p. 1409.)
Mr. Kennedy. Mr. Chairman, Mr. Hester Wood, who is the former
comptroller of the Palm Desert Corp., and who is presently manager
of the Palm Desert Water Co., still has the records of the Palm Desert
Corp., which he is sending us, and these show the following payments
by Frank Brewster: On March 7, 1951, a downpayment of $4,000 was
made.
The Chairman. Let us see that photostatic copy of the check. Did
it go through that corporation ? The endorsement on the back of it, of
exhibit No. 74, the cashier's check, has : "Pay to the order of Desert
Bank, Cathedral City, Calif., for deposit only, Palm Desert Water
Co., Palm Desert Corp., Post Office Box 1, Palm Desert, Calif." Can
you tell the date this check was deposited ?
Mr. Kennedy. March 7, Mr. Chairman.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1145
The Chairman. Does that show on the check ?
Mr. Kennedy. It was charged at the bank on March 12.
The Chairman. In other words, it o:ot back to the Seattle First
National Bank on March 12 ; is that correct ?
Mr. Kennedy. Yes.
Mr. Chairman, we have traced this clieck of $4,000 that w\as pur-
chased. A cashier's check was purchased by Mr. Claude O'Reilly.
We have traced that down to the Palm Desert Corp., and it is one and
the same check as the $4,000 downpayment that was made by Frank
Brewster for that home.
Mr. Griffin. Mr. Chairman, I want to object to the counsel making
statements. He has a right to get his information by questioning, or
he can use his affidavits.
The Chairman. That statement will not be considered as evidence.
We will produce the witnesses if necessary. But we are doing this
to help Mr. Brewster make any statements "he wants to in clarification
so he can better answer.
Mr. Brewster. Don't help me too much.
The Chairman. Sir?
Mr. Brewster. I appreciate that.
The Chairman. That is the information — Mr. Brewster
Mr. Brewster. I am not used to this kind of help.
The Chairman. Just a moment. That is the information that the
committee has. You make any comments about it that you like. Is it
true or not true ?
Mr. Brewster. I have no comments at the present time, but I am
positive that I will have an answer for you.
The Chairman. All right. We will be waiting. Go ahead.
Mr. Kennedy. Mr. Chairman, to finish that transaction, that was
$4,000 paid down at that time for the first payment. Tlien there was
a payment on March 31, 1951, for $1,432.80.
Would you correct me if I am wrong in any of these figures ?
Mr. Brewster. I haven't anything to correct you with.
(At this point. Senator ErVin withdrew from the hearing room.)
Mr. Kennedy. And April 28, 1951, another $7,600 was paid.
The Chairman. You may state this according to the information
that the committee has, so that it will enable Mr. Brewster to check
against this information, and, if it is in error, we want to know it.
If it is not in error, these facts should be establislied. Proceed.
Mr. IvENNEDY. Then on September 27, 1951, according to our infor-
mation, another $2,150 was paid, making a total of $15,182.82.
Mr. Brewster. I borrowed $15,000 to build that home from
Mr. Kennedy. We have established definitely that the $7,600 pay-
ment came out of your bank account, came from your own personal
fund.
Mr. Brewster. Did you find out where the $15,000 went in there,
too?
Mr. Kennedy. Yes.
Mr. Brewstter. I win a point.
Senator Mundt. You stopped. You said you borrowed $15,000
from — and then you stopped.
Mr. Brewster. From a gentleman by the name of William Edris.
Senator Mundt. Is he connected with the teamsters' union ?
Mr. Brewsi^r. No.
1146 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator MuNDT. He is a personal friend ?
Mr. Brewster. Yes, sir. I borrowed 25, altogether, at that period
of time.
Mr. Kennedy. What is Mr. Edris' business ?
Mr. Brewster. He is a retired businessman.
Mr. Ivennedy. What was his business ?
Mr. Brewster. He owned the Olympic Hotel in Seattle; he owned
the Dennison Foods Corp. ; he had considerable stocks and bonds. He
was quite a man around Seattle.
Mr. Kennedy. Did he have anything to do with the race wire in
Seattle ?
Mr. Brewster. You will have to ask Mr. Edris.
Mr. Kennedy. Did you ever hear that ?
Mr. Brewster. I wouldn't comment on it. I don't know whether
he did or whether he didn't.
Mr. Kennedy. Let me ask you, from your personal knowledge or
information, did he have anything to do with the race wire in Seattle ?
Mr. Brewster. My personal information, my personal information,
I don't know whether he did or not.
Mr. Kennedy. Did you ever hear that he had ?
Mr. Brewster. I don't believe too much in hearsay. I might have
heard. But do you know how long that has been ?
Mr. Kennedy. No, Mr. Brewster.
Mr. Brewster. You should go back quite a ways, then.
Mr. Kennedy. You have no comment on that? You don't know
anything about that ?
Mr. Brewster. No, I have no comment on it.
Mr. Kennedy. Could you tell us where the $1,432.80 came from,
where that money came from ?
Mr. Brewster. I don't. I got to check on this transaction. It is
1951. It is the same as the other. I don't know at the present time.
You said where the other went, and that showed where it went.
Mr. Kennedy. Would j^ou then check all of those figures and let
us know what the explanation is? We are particularly interested
in
Mr. Brewster. You are going to have to excuse me sometime so
that I can do this. I have been around here for my third week.
Mr. Kennedy. I asked your lawyer, Mr. Griffin, about 2 weeks ago,
and I said that they wanted to go over some of these transactions with
you. That prepared you for the committee hearing. You could
have been looking them up then.
Also, could you try to find out, or see if you could shed any more
light on the $99,999.65?
Mr. Brewster. I will try, yes.
Mr. Kennedy. Is there anybody- in 3'our organization that would
know where that money went, Mr. Brewster?
Mr. Brewster. I don't know whether there would be at the present
time. There was a secretary at that time that is not with us at the
present time. She is over in Japan. I hated like everything to say
that, because I thought that it would draw a laugh.
Mr. Kennedy. What is her name ?
Mr. Brewster. Her name that I always remember was Peggy
Thaver.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1147
Mr. Kennedy. Then did she get married and become Peggy Thayer
Agapoff ?
Mr. Brewster. Yes. That is the name. I always forget the Aga-
poff, or whatever it is.
Mr. IvENNEDY. Were there any books kept at all as to where any of
this money was going when the checks were going, that you know of ?
Mr. Brewster, That Avould have been probably a bookkeeping trans-
action, and I don't know whether there was or not.
Mr. Kennedy. How were you going to make an accounting to the
membership of that union on this $99,000 ?
Mr. Brewster. I don't know. I am going to
Mr. Kennedy. Do you think they are entitled to an accounting for
the $99,000 of their dues?
Mr. Brewster. Well, my opinion on the moneys that we spent for
our political campaigns and so forth, they got it in wage scales. I
think that we were able to keep down bad legislation, and so forth,
that was cropping up. I believe, whether it looks big or small, when it
is spread over, I honestly believe that the wage scales and the wage
agreements reflect what was spent. I do know this, and I will make it
as a positive statement, that we spent mone}^, and I believe that in
90-some percent of the instances it was spent very well and it reflected
in something that I have been fighting for for years, good wages, work-
ing conditions, and I was the originator of health and welfare in labor
organizations on the west coast and also the pensions.
Mr. Kennedy. Do you think it is a good situation where you and
Mr. O'Keilly can determine where such large sums of money are going
to be spent without having to make any kind of an accounting to the
membership ?
Mr. Brewster. Well, I believe that those things are done in other
businesses, and so forth.
Mr. Kennedy. That you could spend this large a sum of money
without making an accounting to anyone ?
Mr. Brewster. I think so, and along this field I believe so.
Mr. Kennedy. Has the membership of local 174 been attempting, at
least a group of them, to get an accounting from you, and local 174
officers, as to how the money was spent ?
Mr. Brewster. There has been a group, yes, a group of about 3 or 4.
I think it is easy to get that many in any organization. They haven't
any following with them. I will say this, that I think 174, the general
organization, is in wonderful shape. Some of this has been explained,
and I believe that they are well satisfied with their
Mi\ Kennedy. Do you think it is in wonderful shape financially
when you can come before this committee and not explain at all how
$99,00*0 was spent, give no explanation at all how $99,000 was spent ?
Mr. Brewster. I think we got results in wage scales.
Mr. Kennedy. Particularly when we find that $4,000 of that money
ended up in the purchase of your home in Palm Springs ?
Mr. Brewster. I am not too positive that that wasn't paid back. If
you will go on further, you will find out that I paid
Mr. Kennedy. Go ahead.
Mr. Brewster. I didn't want to have you getting information in
both ears.
Mr. Kennedy. Go ahead.
1148 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewstek. I think, and I want to check on it, that that has
probably been corrected.
Mr. Kennedy. What has been corrected ?
Mr. Brewster. Well, I say, if that is what it was. I don't know
whether it was or not. But I want to check on it. I don't want to
make statements here, and I don't want you to try to lead me to a state-
ment. I don't want to be led into a statement. I am checking on it
and I will check it again.
Mr. Kennedy. If you cannot remember the original business trans-
action, how can you remember that you paid it back ?
Mr. Brewster. I might have something that would show it.
Mr. IvENNEDY. Where would you ? Would that be in your personal
books and records ?
Mr. Brewster. I am not sure where it would be, but I am going to
look everywhere.
Mr. Kennedy. Would you make your personal books and records
available to the committee so that we could help you look ?
Mr. Brewster. You are helping me too much now.
Mr. Kennedy. Would you make your personal
Mr. Brewster. Wait. On my personal books and so forth, I don't
want to get into that hassle. I haven't anything to hide on my personal
accounts.
Mr. Ivennedy. Would you make those available to us so we could
also look through them ?
Mr. Brewster. Will you give me some time to think that over and
consult with my attorneys ?
The Chairman. Yes, sir. We will give you some time.
Mr. Kennedy. You say that all of this money went to political pur-
poses ?
Mr. Brewster. To the best of my knowledge.
Mr. Kennedy. That $4,000, that particular item was charged on
the books as organizational expenses. Can you give us any explana-
tion for that ?
Mr. Brewster. I cannot.
Mr. Kennedy. You are at a loss to explain anything about these
transactions ?
Mr. Brewster. At the present time.
Mr, Kennedy. Mr. Chairman, I have a lot of questions about some
of these other items.
Senator Goldwater. Mr. Chairman, I have just one question.
The Chairman. Senator Goldwater has a question. When he con-
cludes with his inquiry, we will take a recess.
Senator Goldwater. What was the name of the gas station that you
and Mr. Beck operated ?
Mr. Brewster. It is the Standard Tire Service.
Senator Goldwater. How many employees did you have there ?
Mr. Brewster. How many employees did we have? We do not
have any employees.
Senator Goldwater. At the Standard Tire ?
Mr. Brewster. No. That is leased out to the — that is a gentleman
that has about three stations, and that is leased out. We have notliing
to do with the employees or anything else. We lease it on a guarantee
and a percentage of gas and oil and accessories.
IMPROPER ACTIVITIES IN THE L.\BOR FIELD 1149
Senator Goldavater. Do you know if the workers there are members
of a union ?
Mr. Brewster. Oh, sure.
Senator Goldwater. You are sure they were ?
Mr. Brewster. Well, I don't think I would have patronized them if
they weren't.
Senator Goldwater. You have established that they were ?
Mr. Brew^ster. I know they are members of the union. We have a
very strong union in that field in the city of Seattle, and you don't
think we would make a lease to a nonunion concern, Mr. Beck and
myself.
Senator Goldwater. We found one of your organizers who had no
compunction about hiring nonunion people. I thought possibly that
would carry over to your level.
Mr. Brewster. I would like to have his name.
Senator Goldwater. Mr. Crosby.
Mr. Brewster. Nonunion people ?
Senator Goldwater. Yes. They built a gameroom for him in his
basement.
(The witness conferred with his counsel.)
The Chairmax. Senator McNamara ?
Senator McNamara. I would like to ask this: In this period of
1951 to 1953 that we have been discussing, can you tell us about how
many membei-s you had in local 174 ?
Mr. Brewster. I would say roughly speaking about 6,500.
Senator McNamara. 6,500?
Mr. Brewster. Yes, s.ir.
Senator McNamara. And this $100,000 that is in question in the
special fund was contributed by these 6,500 members by way of dues?
Did you have any other source of funds for this special fund ?
Mr. Brewster. No assessments. Senator.
Senator McNamara. No assessments ?
Mr. Brewster. No.
Senator McNamara. That would mean that all of the money came
out of dues ?
Mr. Brewster. That is right.
Senator McNamara. How much do the members pay in dues in local
174?
Mr. Brewster. $5 a month.
Senator McNamara. $5 a month ? You are putting a large percent-
age of your income into this special fund, then, are you not?
Mr. Brewster. Sir ?
Senator McNamara. You are putting quite a large percentage of
this income into this special fund at that rate.
Mr. Brewster. I wouldn't say so.
Senator McNamara. 6,500 members, $15 per month?
Senator Mundt. It is $15 per member, Mr. Brewster, that was taken
out for political purposes. That is quite a contribution for each in-
dividual union man involuntarily to have to make to a campaign to
support candidates whose names he does not know.
Mr. Brewster. $15 over a period of 4 years. Senator ?
Senator Mundt. 1951 to 195-3, in one campaign.
Mr. Brewster. Didn't it start in 1950 ? June of 1950.
1150 IMPROPER ACTWITIES IN THE LABOR FIELD
Mr. Kennedy. June of 1950. That is the only period where the
books were made available, Senator Mundt.
The Chairman. Are there any further questions ?
The committee will stand in recess until 2 o'clock.
(Members present at the taking of the recess: The chairman. Sena-
tors McNamara, Mundt, and Goldwater.)
(Whereupon, at 12 : 20 p. m., the committee recessed, to reconvene
at 2 p. m., the same day.)
AFTERNOON SESSION
(The hearing was resumed at 2 p. m.. Senator Jolin L. McClellan,
chairman, presiding.)
The Chairman. The committee will be in order.
(Present at the convening of the session were Senators McClellan,
Ives, and Goldwater. )
The Chairman. The chief counsel thinlvs at this point we should
interrupt the testimony of Mr. Brewster and place on the stand Mr.
Bellino, the accountant for the committee, who has checked these
records, so that he might give some testimony at this point that would
help to clarify and keep the record straight so that we can understand
this as we proceed further.
You do solemnly swear that the evidence you shall give before this
Senate Select Committee shall be the truth, the whole truth, and noth-
ing but the truth, so help you God ?
Mr. Bellino. I do.
TESTIMONY OF CAEMINE S. BELLINO
The Chairman. Please state your name and your place of residence
and your business or occupation?
Mr. Bellino. My name is Carmine S. Bellino, I reside in Bethesda,
Md., and I am a certified public accountant.
The Chairman. How long have you been practicing as a certified
public accountant?
Mr. Bellino. I have been a certified public accountant since 1932.
The Chairman. What position do you hold with this committee?
Mr. Belling. I am the accountant consultant.
The Chairman. How long have you been working for the Senate
Permanent Committee on Investigations?
Mr. Bellino. I have been with the Senate Permanent Investiga-
tions Committee and other congressional committees since 1947.
The Chairman. You have been doing work in connection with this
present investigation ?
Mr. Bellino. Yes, sir.
The Chairman. This investigation being conducted by this select
committee ?
Mr. Bellino. Yes, sir.
The Chairman. All right, Mr. Counsel.
Mr. Kennedy. Prior to 1947, what work were jou doing ?
Mr. Bellino. I was with the Federal Bureau of Investigation for
11 years.
Mr. Kennedy. Prior to the time you started working as an investi-
gative consultant for congressional committees; is that right?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1151
Mr. Belling. Yes, sir.
Mr. Kennedy. So you have been in investigative work for a period
of about 20 years ?
Mr. Belling. Since 193-1.
Mr, Kennedy. Thank you. Now you have been to Seattle and you
made a study of the special fund, local 174 special fund, that we dis-
cussed this morning.
Mr. Belling. "We examined the records of local 174 which included
checks drawn to an account called local 174, special fund.
Mr. Kennedy. Now, did you have discussions with the officers and
officials of the bank, Seattle First National Bank, is that right?
Mr. Belling. Included in our subpena were dociunents of all rec-
ords relating to local 174 and they did not come up with any records
of local 174, special fund. They said there was no such account by
that name in their bank.
Mr. Kennedy. There was no such account by that name ?
Mr. Belling. No, sir.
Mr. Kennedy. In that bank ?
Mr. Belling. No, sir.
Mr. Kennedy. Is that correct?
Mr. Belling. Yes, sir.
Mr. Kennedy. What is the practical effect when the checks for ap-
proximately $99,999.65 were written ? "V^^iat was the practical effect ?
Mr. Belling. It was just like drawing a check to cash. They could
just as well have said, "Pay to order of cash," and cashed the check.
Mr. Kennedy. Now, of the checks that you have reviewed, were
they turned into either cash or into cashiers' checks ?
Mr. Belling. Those that we have examined are all either cashed
at local 174 with their own cash funds, or then deposited in the bank,
or cashed at the bank.
Mr. Kennedy. Did you make a study extensively of this $4,000
check that we discussed this morning ?
Mr. Belling. Yes, sir.
Mr. Kennedy. And that was signed originally by Mr. Claude
O'Reilly and Mr. Frank Brewster ; is that right ?
Mr. Belling. Yes, sir.
Mr. I^JENNEDY. Frank Brewster at that time was secretary-treasurer
of local 174?
Mr. Belling. I believe so ; yes, sir.
Mr. Kennedy. And the check was made out from the bank accounts
of local 174, the regular bank account?
Mr. Belling. Drawn on the Seattle First National Bank.
Mr. Kennedy. And made to this special fund ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Would you trace for the committee what happened
to that check, as there seemed to be some question about it ?
Mr. Belling. With that check, Mr. O'Keilly purchased a bank check
at the Seattle First National Bank payable to the Palm Deserts Corp.,
at Palm Springs. That check was then turned over to the Palm
Deserts Corp., deposited in their bank account and used as a payment
against the home purchased by Mr. Brewster in Palm Springs.
Mr. Kennedy. Now, there is no question about that whatsoever ; is
that right?
89330—57 — pt. 4 4
1152 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Belling. No, sir.
Mr. E^ENNEDY. Is there any way to tell from the books of local
174 who received these moneys, this 99,000 ?
Mr. Belling. No, sir.
Mr. Kennedy. Is there no way of telling at all who actually re-
ceived the money and who got the money ?
Mr. Belling. No one other than whoever signed the checks, either
one or the other that signed the checks.
Mr. Kennedy. Either Frank Brewster or Claude O'Reilly ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Did thev have to endorse the check on the back,
then?
Mr. Belling. They would be endorsed or typed. Sometimes it
would be typed on the back, "Local 174, special fund," and then it
would be cashed through the regular account of local 174.
Mr. Kennedy. Is there anything in the books that indicates that
this money went to any political figures ?
Mr. Belling. No, sir.
Mr. Kennedy. There is not ?
Mr. Belling. No, sir.
Mr. Kennedy. Now, this ^,000, what account was that charged
against ?
Mr. Belling, That was charged to organization expenses,
Mr. Kennedy, And this $4,000 that was charged as organization ex-
penses on local 174 went as a downpayment for Frank Brewster's home
at Palm Springs ?
Mr. Belling. Yes, sir, and it was so included in the form 990 filed
with the Treasury Department, as an item for organizational expense,
Mr, Kennedy, Wliat is that ?
Mr. Belling, Form 990 is an annual report filed by the local unions,
they being exempt institutions. They file these reports each year.
Mr. Kennedy, With the Treasury Department ?
Mr, Belling. Yes, sir,
Mr, Kennedy, And that was listed in that form 990 as an organi-
zational expense ? ^
Mr. Belling. Yes, sir.
Mr, Kennedy, Now, you have been through some of the other checks
that were drawn to this special fund account, have you not?
Mr. Belling, Yes, sir.
Mr, Kennedy. For instance, in June, check No. 11437 for $3,800.
Is there any explanation in the books as to what happened to that
check ?
Mr, Chairman, most of these checks we do not have. We have just
taken this from the books of local 174. Those checks as I understand,
have been destroyed, is that right?
Mr, Belling, A good number of them were. Some of the later ones
were not but they refused to give us photostats when we asked for
them recently, claiming that they liad lost them. But with regard
to the
The Chairman. Is that the bank now ?
Mr, Belling. No, this is the local union.
The Chairman. They claim they have lost them ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1153
Mr. Belling. Yes, sir, but we noticed what was developing and we
rtsked for photostatic copies of all of the special fund checks and we
obtained 2 or 3 of them and then the balance they claimed they could
not find.
The Chairmax. Do you know how many checks were written to
hr'mcr this total up to $99,999 ?
Mr. Belling. Yes, sir.
The Chairman. Have you a record of the number of checks?
Mr. Belling. AVe have each check, starting in June of 1950. The
Itooks were not available prior to June and there may be considerable
more prior to June of 1950, and the items that we know about, I be-
lieve, Mr. Kennedy has a list of there.
Mr. IvENNEDY. There were 26 checks.
The Chairman. 26 checks made up this total of $99,999 ?
Mr. Belling. Yes, sir.
The Chairman. Go ahead.
Mr. Kennedy. But there is nothing in the books that would indicate
where the money went?
Mr. Belling. No, sir. With regard to the $3,800 item that you
asked about, the books merely show the check number of 11437, issued
during June of 1950. drawn to the order of "Local 174, Special Fund,''
$3,800, shown in the other column.
There is no other explanation.
Mr. Kennedy. And the same thing is true for the rest of the 20-
odd checks.
Mr. Belling. On some of the others they would have a notation,
''Organization expense," or "Reimbursement for organization ex-
pense."
Mr. Kennedy. But there is nothing about the fact that they went
10 any political figure ?
Mr. Belling. No, sir.
Mr. Kennedy. Or that there was a political expense ?
Mr. Belling. No, sir.
Mr. Kennedy. There is nothing in the books to indicate that?
Mr. Belling. No, sir.
The Chairman. Are there any questions ?
(At this point in the proceedings Senator McCarthy entered the
hearing room.)
The Chairman. Mr. Brewster, come around, please.
TESTIMONY OF FRANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
Mr. Kennedy. I take it that in the noon hour you have not been
able to find any explanation of the $4,000 check or this other special
fund, is that correct ?
Mr. Brewster. No, I just had my lunch.
Mr. Kennedy. You have not been able to ?
I want to ask about another bank account that we became interested
in and that is the Unemployment Relief Fund. Do you have a bank
account called the TTnemployment Relief Fund for Local 174?
Mr. Brewster. We had an account that we called the Unemploy-
jnent Relief Fund, and that was for the members, for loans or dona-
1154 IMPROPER ACTIVITIES IN THE LABOR FIELD
tions where they needed it and so forth, and that was always handled
by O'Eeilly.
Mr. Kennedy. Xow, we had a problem with the Unemployment
Eelief Fund, also, because when we asked the bank for the Unemploy-
ment Relief Fund they did not seem to have that either.
Mr. Beewster. I can't understand that and I don't know that.
(At this point in the proceedings. Senator Kennedy entered the
hearing room.)
Mr. Kennedy. Now, the moneys that w^ent into that bank account
or came out that Avere made out from Local 174 to the Unemployment
Relief Fund, from 1950 through 1953, was approximately $60,000.
Is there any explanation as to where that money went?
Mr. Brewster. I think it went for unemployed relief, the same as
it is designated.
Mr. Kennedy. To whom did the money go and who was the re-
cipient of the $60,000 ?
Mr. Brewster. Different members of the organization.
Mr. Kennedy. Is there any place in any of your books that you
could give us the names of anybody who received that money ?
Mr. Brew^ster. I understood at the time that they would sign for
whatever they got. Now, that, Mr. Kennedy, is a bookkeeping pro-
cedure and I 'was of the opinion that they would sign those. Did you
hear what I said ?
Mr. Kennedy. That you were under the understanding that that is
what the procedure was ?
Mr. Brewster. That is what I thought.
Mr. Kennedy. We again went to the bank to try to locate this
Unemployment Relief Fund bank account and the bank stated that
there was no such fund.
Mr. Brewster. Well, I think that was kept in the way of cash,
and I think that the cash part of it is kept and I think that that record
is around there somewhere.
Mr. Kennedy. The problem again for us is that we asked for the
records dealing with the Unemployment Relief Fund and we were
told that there were no records on it.
Mr. Brew^ster. Well, it has only been a short time that the person
probably that you talked to has been employed with 174. Prior to
the time that you are referring to, there was another bookkeeper and
that would be the one that would probably have the information.
The Chairman. Mr. Brewster, as secretary-treasurer of this local
with all of this money being handled, did you ever look at the books
and know what was going on ?
Mr. Brewster. We had trustees
The Chairman. I am not talking about trustees.
Mr. Brewster. I never looked at the books myself.
The Chairman. You mean you did not take enough interest in the
union funds as secretary-treasurer of it to know what was happen-
ing to them and how they were being handled ?
Mr. Brewster. Certainly I took enough interest but I was satisfied
with the reports of the trustees that were elected members that were
working on trucks.
The Chairman. Did you ever see a record of this Unemployment
Relief Fund, a book or a record in which entries were made with
I'espect to the distribution of it ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1155
Mr. Brewster. I have seen one, yes, sir.
The Chairman. Where is that book ?
Mr. Brewster. I don't know where it is. I have seen one, but as I
want to say again, I am not the bookkeeper and I don't
The Chairman. You do not have to be the bookkeeper. You are
a higher official than the bookkeeper, are you not ? Do you not have
a higher responsibility ?
^tv. Brewster. I probably have a higher responsibility.
The Chairman. Is it not your responsibility to see that the book-
keeping is done and it is done propertly? Is that not your responsi-
bility as secretary-treasurer (
Mr. Brewster. I presume it is.
Senator JNIcCarthy. May I ask a question. I swear I am a bit
confused, I believe. I have not been listening to the testimony for
some time and I have been out through the country running down
some leads which I intend to give over to the chief counsel and the
chairman.
But do I understand that there was $60,000 in the relief fund that
was never banked and it was kept some place in cash and paid out
and you do not have any books to show who got the money ? Is that a
correct assumption ?
Mr. Brewster. Senator McCarthy, my recollection is that there
were books and there must be books there somewhere. I hope that
they are and that I can find them and present them. I know that
there were books set up so that everyone signed, and so forth, and in
some instances we had notes for some of them that made loans, and so
forth and so on.
Senator McCarthy. Now, you have had I do not know how many
weeks to find those books. I wonder why they have not been found.
That is number one. Number two, if I can ask two questions at once,
number two : Why on earth was that money not banked and checks
made out for the relief fund ?
Mr. Brewster. I presume they thought it was easier for them to
come in and get the cash when they needed it instead of going out to
be identified to cash the check.
Senator McCarthy. But a search has been made for the books?
Mr. Brewster. I presume there has. I haven't made any. I have
been here for over 2 weeks, Senator, myself.
Senator McCarthy. I understand that and I understand you have
been here for some time.
Mr. Brewster. Yes, sir.
Senator McCarthy. But you have subordinates and you have been
in touch with them, I assume, and have you told them to make a search
for those books ? I would like to know about that $60,000.
Mr. Brewster. I would, too.
Senator McCarthy. Well, now, the question is, have you told your
subordinates to make a search for the books ? The books must be some
place. They have not disappeared into thin air.
Mr. Brewster. Well, as I said before you sat on the committee, that
as soon as I am released I am going to spend as many hours as it takes
to see that everything that I can unfold will be unfolded and I will dig
into the bottom of everything.
1156 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McCarthy. That to me is too general, Mr. Brewster. Tliis
afternoon when you get off the stand, is there not some one you can call
and say, "Find the books, I want to know where the $60,000 went" '?
Is there not some one who is in charge of those books, someone who will
know where they are ?
Mr. Brewster. There is someone in charge of the books since this
record that you have, but there isn't anybody there that was in charge
of them prior to this.
Senator Kennedy. Who was in charge of the books then when the
money was given out?
Mr. Brewster. Peggy Thayer.
Senator Kennedy. Where is she now ?
Mr. Brewster. She is in Japan. She married a naval officer, and he
was transferred to Japan.
Senator Kennedy. When she transferred her custody of the record
was there any sort of a survey made or was there any sort of record
kept as to what books she transferred to your present custodian?
Mr. Brewster. I don't remember of any.
Senator Kennedy. You have no report of what exactly she turned
over to the new treasurer ?
Mr. Brewster. No ; I have not.
Senator Kennedy. Have you written to ask her about these records
of the $60,000?
Mr. Brewster. No ; I have not.
Senator Kennedy. And you have no explanation as to why the
money was not dispensed through a checking form which would have
given you a clear record of who received the money ?
Mr. Brewster. Other than I thought that they were cashed and
they were given cash and signed a receipt. That is what I thought the
procedure would have been.
Senator Kennedy. You have not been in touch with her in the past
month since this matter came to a head ?
Mr. Brewster. No, sir ; I don't. I wouldn't know exactly where to
get ahold of her.
Senator Kennedy. Thank you.
The Chairman. I have just one further question before counsel re-
sumes. Let us establish definitely once and for all whose responsibility
it is, to the men who paid the dues, to look after those funds. As sec-
retary and treasurer, are you not the one directly responsible ?
Mr. Brewster. I believe I am in that sense. I hire a bookkeeper.
The Chairman. Any bookl^eeper that you employ there is under
your direction and supervision, is he not ?
Mr. Brewster. That's true, but my field, if I can explain for a sec-
ond, is not around the office. It is all over, and I get in there very,
very little, and I am a bad bookkeeper myself, and I don't know much
about it.
Senator McCarthy. That is an understatement.
The Chairman. But I am trying to find out, Mr. Brewster, what
sense of responsibility do you feel to the men from whom you collect
the dues with reference to disbursing that money and keeping a rec-
ord of it, so that you can make a proper accounting ?
Mr. Brewster. I thought that there was.
The Chairman. You thought there was a record being kept ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1157
Mr. Brewster. Yes, sir.
The Chairmax. You cannot be positive of it, though, right now,
can you ?
Mr. Brewster. Well, I am positive that I thought at that time that
there was a record.
Tlie Chairmax. You are positive that you thought ?
Mr. Brewster. Yes, sir.
Senator Goldwater. Now, Mr. Brewster, this morning you and
Senator Mundt agreed pretty much on the need for responsibility in
reporting on union funds ; is that not correct ?
Mr. Brewster. Yes, sir.
Senator Goldwater. You agi-eed that possible legislation should be
considered that would set up the machinery whereby labor officials
would report the expenditures of funds to the Labor Department ; is
that not correct ?
Mr. Brewster. Generally, I think it is.
Senator Goldwater. Just as we closed this morning's session, it was
developed, and I believe I am correct in this, that $15 per member
went into political uses in 1951 and 1952 and 1953, about a year and a
half's time.
This money came from union dues ; is that not correct ?
Mr. Brewster. That is less than $5 a year ; yes, sir.
Senator Goldwater. Well, $15 would represent union dues and
special assessments that you might have made for political purposes.
Mr. Brewster. We have no special assessments.
Senator Goldwater. You have no special assessments for political
purposes ?
Mr. Brewster. No, sir.
Senator Goldwater. Now, the membership or the general mem-
bership of the union had no say in how that $15 would be spent, did
they ?
Mr. Brewster. Of who gets what out of it ?
Senator Goldwater. How you spread it around ?
Mr. Brewster. I don't believe we take it up with each individual
member.
Senator Goldwater. In other words, they did not have a say
whether you would spend it for a Republican or for a Democrat?
Mr. Brewster. We mixed it up a little bit.
Senator Goldwater. You are a little different than most of them.
They did not have any say on whether it would be spent in support
of a certain issue or against it, did they ?
Mr. Brewster. Oh, yes, we have those meetings where those ob-
jectives are taken up and they vote that they will do it, and also
finance it.
Senator Goldwater. Do you personally think that the individual
union member should have some say in which candidate you are going
to support or which party you are going to support with this money ?
Mr. Brewster. Oh, surely.
Senator Goldwater. Do you think that it is right for any union to
take involuntary dues money and spent it for just one party when the
union is made up of members of both ?
Mr. Brewster. Senator Goldwater, our local union recommended
a Republican for the district of Seattle, Mr. Thomas Pelly for Con-
gress. I don't think that we lean entirely in one direction.
1158 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Goldwater. I am not saying that you do or do not. I do
not argue that point. In that case I think that you were doing wrong
by the Democrat members of your particular union.
Mr. Brewster. I don't think so.
Senator Goldwater, You do not think so ?
Mr. Brewster. No, sir.
Senator Goldwater. Do you think that the union has a legal right
to take compulsory dues money and spend it for candidates of either
party when both parties are represented in that compulsory collection ?
Mr. Brewster. I believe that the membership has a right to spend
the money for any candidate regardless of what his affiliations are.
Senator Goldwater. Even though that money is compulsory, and
it comes by compulsion from members of both parties and you choose
to support the members of only one party ?
Mr. Brewster. I don't think "particisism" makes the difference.
Senator Goldwater. Do you think it is morally right to do that?
Mr. Brewster. I certainly do.
Senator Goldwater. In an organization that is formed under law
for the purposes of collective bargaining and the furthering of the
interests of its members in the fields of wages and hours, do you think
that that organization then, has a legal right to, in effect, constitute
its political party ?
Mr. Brewster. I think that labor has a right to elect their friends
and defeat their enemies.
Senator Goldwater. As an organization or by individual members ?
Mr. Brewster. As an organization that is comprised of individual
members.
Senator Goldwater. You would agree with the statement that
Walter Reuther said on this subject when I questioned him last fall
along in October ? I said :
One other question. Do you think it would be better for the union member
to make his $5 contribution direct to the candidate or to channel it through
your association?
Mr. Reuther. I think if we did the kind of job that I think we are capable of
doing, of trying to get the average American citizen conscious of his citizenship
responsibility and making him understand that for every privilege there is a
corresponding obligation, and one of the obligations is to make his contribu-
tion, I would prefer him to contribute directly to the candidate and directly
to the political party.
Would you agree with that ?
Mr. Brewster. Over a course of several years, that might come true,
but isn't at the present time.
Senator Goldwater. I wish you would answer me as a responsible
labor leader, why it is that certain leaders of labor seem to think that
the members of unions have to be educated politically ?
Mr. Brewster. I think that they are entitled to know the records
and the truth of the people that they are rumiing for. I think that
that is fair education and I know that they don't get the same break
in the press.
I think that is the only medium that they really have, in our periodi-
cals that we put out, that gives them the facts and recommendations.
Senator Goldwater. You do not seriously believe that, do you ?
Mr. Brewster. Just about as serious as I am talking.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1159
Senator Goldwater. You think that the press of this country is so
biased in one direction that the citizens of this country cannot get an
education that they need for political activity?
Mr. Brewster. Well, I am not trying- to run down the reporters or
anything else, but I do say this : That the press certainly leans in one
direction to a great degree.
Senator Goldwater. I have often been interested in why it is that
certain leaders of labor, and not all of them, but some leaders of labor
have suddenly felt it necessary to spend millions and millions of dol-
lars upon the so-called education of their membership when their
membership probably constitutes the most intelligent bloc of voters
we have in this country.
I cannot quite figure it out. You must have some reason other than
that.
Mr. Brewster. Any reason that I have certainly is not personal,
because there isn't any political job that I ever aspired for or wanted
in the United States.
Senator Goldwater. Would you agree with me that it should be the
right of every citizen, whether he belongs to a union or not, whether
he belongs to this church or that church or this club or that club to
contribute his money the way he wants to contribute it and not have
that contribution regulated by somebody who is in charge of the
organization ?
Would you agree with that ?
Mr. Brewster. I think fundamentally that I could agree with that.
Senator Goldwater. Why can you and I not agree that possibly in
the course of our considerations of the actions political of labor unions
in the past 10 years, that we might have to get back to the political
freedom of your members and consider legislation that would prevent
their dues money from being used for political purposes.
Would we not pretty much agree on that ?
Mr. Brewster. If you could probably take corporations and every-
body else in the United States and do the same thing with them, I
think it would be all right.
Senator Goldwa^ier. I would be in favor of doing that, if corpora-
tions are guilty of it.
Mr. Brews'^ter. If you treat labor and industry and everyone alike,
then I could agree with you.
Senator Goldwater. You would agree with that ?
Mr. Brewster. But I don't think" you should single out labor and
say they can't do it and then corporations and institutions and every-
body else, people that have the wealth, be able to do these things.
Senator Goldwater. Just a moment. I agree with you, Mr.
Brewster, and you agree with me ?
Mr. Brewster. Make it across the board and I will agree to it.
Senator Goldwater. If we make it across the board, legislativewise,
you feel the unions can get out of the field of political activity ?
Mr. Brewster. I would like to see a day come when there would be
no contributions of any kind.
Senator Goldwaiter. I am glad to hear you say that and I think the
day has arrived.
Senator McCarthy. Mr. Brewster, do you not think that it would
be an excellent idea if we could get back to the thinking of Samuel
1160 IMPROPER ACTIVITIES IN THE LABOR FIELD
Gompers, who felt that unions should not engage in politics and that
the individual members could engage in politics all they cared to ?
They can contribute and they can make speeches and they can do
whatever they want to, but not have a Democrat here and a Republican
there and have his funds channeled someplace where he does not want
them channeled.
That is along the lines of Senator Goldwater's question. I know.
Mr. Brewster. Senator McCarthy, I was a personal friend of Sam-
uel Gompers and I admired him very much. You have only told a
little of the story. One of his regular speeches and so forth stated that
we should defeat our enemies and elect our friends.
Senator McCarthy. But defeat them by the individual action of
the members of the labor unions?
Mr. Brewster. By education to the membership, and tell them who
our enemies were and who our friends were.
Senator McCarthy. I have no objection whatsoever to your edu-
cating the members of labor unions. I think any information you want
to put out about who you think are your enemies or your friends. That
is good. But I do wonder if you would not agree, and again this is
along the lines of Senator Goldwater's question, in view of t]\e fact that
corporations cannot make contributions to campaigns, should not the
same rule apply to labor unions and let the individual laboring inan
decide whether he wants to give his money for Joe Doaks or Pat
Smith?
Mr. Brewster. Are you talking about national campaigns?
Senator McCarthy. Any campaign, either local. State, or national.
Mr. Brewster. Is that so in local campaigns ? Can't corporations
give to any candidate ; that is, in any county or city ?
Senator McCarthy. In my State they cannot and I think that is the
general rule all over the country, corporations cannot contribute.
The members of a corporation can contribute. Do you not think the
same rule should apply to a labor union and let the individual mem-
bers decide who they will support and who they will oppose ?
As I say, I have no objection to any education that you may want
to give them.
Mr. Brewster. Senator McCarthy, let me say this : I have got some
views maybe, and I listen, and I appreciate all of the information that
I am getting. But I am in a position where I represent and work with
other leaders. I am a segment of this movement. I would like to give
that a lot of thought and not answer it by using snap judgment.
I can see a lot of logic in what you are talking about, but then I
want to see what reaction it might have on our organization generally.
Senator McCarthy. Mr. Brewster, and I do not want to continue
this indefinitely, I believe you represent 11 States and I am sure you
have given this matter considerable thought.
It is up to us to decide what, if any, legislation is necessary and I
just wonder if you would not agree with me that no corporation, no
labor union, can contribute funds to a campaign and let us leave it up
to the individual to decide whom he thinks he should support and
whom he thinks that he should oppose ?
Mr. Brewster. We are going to have a meeting the latter part of
June for all of the delegates that are sent by their local unions to our
conference.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1161
I would like to have you come out and address us or any otlier mem-
ber of the committee. If you can sell that membership on what you
are talking about and so forth, I am not going to try and unsell them.
Senator McCarthy. Thank you very much.
Senator Mundt. Mr. Brewster, to be a teamster in Seattle, Wash.,
it is necessary, is it not, to belong to the teamsters union ?
Mr. Brewster. Yes, sir ; it is.
Senator Mundt. I am not familiar with the term. Is it a "closed
shop"?
Mr. Brewster. No ; we have a union shop.
Senator Mundt. You make a contract with the brewery or the bakery
or the department store and that contract means that they have to
employ only union teamsters ?
Mr. Brewster. That is right.
Senator Mundt. So to the extent a man wants to be a teamster, let
us say, in Seattle, he has to belong to the teamsters union ?
Mr. Brewster. Well, that is the qualijfication ; yes.
Senator Mundt. And to belong to the teamsters union, he has to pay
whatever dues are assessed against him which I think you said were
about $5 per month.
Mr. Brewster, That's right.
Senator Mundt. So that your union members have no choice about
this $15 that they had to pay over a period of 3 years for political
purposes. They had to pay that in order to earn a living for their
families as a teamster ; is that right ?
Mr. Brewster. Well, I have a different opinion about the choice.
I think the wage scales and the things that we accomplished for them
in the city of Seattle will approve itself. It is one segment of our
organization that has helped that worker.
Senator Mundt. I am not arguing about what you have made.
Mr, Brewster. An individual doesn't have a choice, but I think ■
Senator Mundt. I am just trying to get the facts. The union mem-
ber in order to support his family as a teamster, has to pay the dues
that are assessed against him even though they include that $15 that
was expended and the $99,000 for political purposes; is that right?
Mr. Brewster. That's right.
Senator Mundt. I was impressed by something that you said in
your main presentation. I think that you took credit to yourself for
having driven out of your union, or I am not sure, it may have been
some other union with whom you were going to collaborate, some
Communist officials ; is that right ? ^
Mr. Brewster. That is absolutely true.
Senator Mundt. And I want to commend you for that. I have been
in that business a little bit myself down here. Anyone who helps get
Communists out of high places, I want to salute. That would indi-
cate you have some pretty sound basic concepts of Americanism some
place in vour system, because the Communists are against our way of
life.
Now, I want to ask you a straightforward question and I would like
a straightforward answer. Do you really feel that it is within the
boundaries of basic Americanisni as you and I understand it, and as
the Communists reject it — is it within the boundaries of sound Ameri-
canism to compel a man in order to earn a living for his family to
1162 IMPROPER ACTIVITIES IX THE LABOR FIELD
make political contributions for individuals whom he might person-
ally prefer to oppose ?
Mr. Brewster. Well, it is hard to give a straightforward answer to
that.
Senator Mundt. That is pretty basic. We are not making any case.
This is a matter of general policy now and under the American flag
in which you and I believe in.
Mr. Brewster. I could say "Yes" and "No," and then what part is
"Yes"' and what part is "No."
Senator Mundt. It is just a one-package question, and you have to
say "Yes" or "No" to the whole thing.
Mr. Brewster. It is too much of a package.
Senator Mundt. Well, let me make it a little simpler.
I am very interested in having your reaction to this. Is it within
your concept of basic Americanism that we should require individuals
in this countrj^, in order to earn a living for their families, to make
political contributions to support candidates whom they personally
might prefer to oppose ?
It has nothing to do with partisan politics. This is just candidates
and candidates.
Mr. Brewster. I don't think that we stop that at all.
Senator Mundt. You do not stop them from voting the way they
want to, of course.
Mr. Brewster. No.
Senator Mundt. I am saying, is it sound Americanism to compel
them to contribute
Mr, Brewster. But I think if the majority
Senator Mundt. To people whom they prefer to defeat ?
Mr. Brewster. The overwhelming majority, which it is in every in-
stance, endorses or recommends candidates. I think that that calls
for an action for all of the people in the organization.
Senator McCartht. The question has not been answered yet.
Senator Mundt. I will ask the reporter to read the question so Mr.
Brewster gets it clearly.
(^A^iereupon the reporter read the pending question as follows:)
Is it within your concept of basic Americanism that we should require in-
dividuals in this country, in order to earn a living for their families, to make
political contributions to support candidates whom they personally might prefer
to oppose ?
Mr. Brewster. I think that the same answer could be given.
Senator IMundt. You have not answered the question yet. Give us
an answer to the question.
Mr. Brewster. Yes ; I think so.
Senator Mundt. When you say that you are supporting a concept
that the Communists that^ou threw out of the union endorsed, that
does not make sense to me.
Mr. Brewster. I say this because I am going to tell you another ex-
ample of something else.
Senator Mundt. I have an example to tell you but you tell vours
first.
Mr. Brewster. When we take a strike vote to go out on strike, cer-
tainly they don't have to possibly go out on strike and they can stay
on the job, or they probably would not be in favor of a strike. But
LMPROPER ACTIVITIES IX THE LABOR FIELD 1163
■whatever it costs in the way of spending money, whatever it costs I
think is an obligation to the majority of the people in the organi-
zation.
I don't think that you can segregate the issue of this any more than
any other issue of majority rule.
Senator Mundt. You are way out in left field and I use the word
"left" advisedly, when you talk that way, Mr. Brewster.
Senator jNIcCarthy. Will the reporter keep track of that question
because I would like to have it reread. I cannot believe that Mr.
Brewster meant to make that answer but I do not want to interrupt
now if you will make a note of that.
Senator Muxdt. You are way out in left field on that. IMien you
have a strike vote, majority rules and that is the decision of the union.
But in this country a citizen has something pretty inviolate and that
is his vote.
I am surprised to have you sit there and tell me that you believe a
majority has a right to disenfranchise a minority in this country.
That is an amazing manifestation if that is what you meant.
Mr. Brewster. I certainly did not mean it that way.
Senator Muxdt. That is the impression you surely left with me.
Mr. Brewster. That isn't the way I meant .it.
Senator Mundt. Let me ask the question over again and you give
me the answer.
Do you believe it is a sound concept of basic Americanism to make
it necessary for a man, in order to earn a living for his family, to con-
tribute under compulsion to the election of an official whom he prefers
personally to defeat ?
I do not care whether it is county, State, ISTational, Republican,
Democrat, or independent. I am talking about basic American rights
that I believe you and I should both salute and support.
Mr. Brewster. I never looked at it in that manner and I am going
to have to do something about it. That is the first time it has been
presented in that fashion and you might possibly have something that
I never have thought of. But I have always been a person that felt
that the majority ruled on all issues and, believe me, I am as far away
from communism as Senator McCarthy.
Senator Mundt. I am not questioning that and I am simply point-
ing out that perhaps in the practices of labor unions, you have set in
motion something which is as un American as communism in that
regard.
Because if you believe in majority rule having the right to disen-
franchise the minority, that certainly isn't within the boundary of my
concept of Americanism.
Let me give you an illustration. I served in the House of Repre-
sentatives for some years with a Congressman from South Bend, Ind.
His father worked for the Stuclebaker Corp. as a laboring man in
order to send his son to college so he could become educated and even-
tually get elected to Congress. This man's father had to belong to a
labor union.
The labor union assessed him a political contribution for the pur-
pose of trying to defeat his son for Congress. Would you call that
good Americanism ?
Mr. Brewster. On that example, no.
1164 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Mundt. That happens to make it witliin the family, but it
seems to me that it could be o;eneralized to anybody. Any teamster
should have the riojht to vote for the man that he thinks is best
qualified.
I completely agree with Senator McCarthy. You have a right to
conduct this educational campaign, and you can list tlie people in your
teamster paper and carry ads and report on the voting records, but
when it comes to requiring a man in order to earn bread and butter for
his family to pay what is, in fact, a tax, and then you use that tax to
support a candidate that he opposes, yoti have a lot of explaning to
do to me to make me believe that is good Americanism.
Mr. Brewster. Senator, let me say this ; if I stick around here for
3 or 4 more days. I don't think that I would contribute to any poli-
tician.
Senator Mundt. You think my question over. It is asked in all
sincerity and I am thinking in terms of legislation about this.
I am not thinking in terms of legislation to cripple labor unions^
but I am thinking in terms of legislation as I indicated this morning,
to protect the American rights of the people who belong to your
teamsters. I do not pretend to know enough about the union move-
ment to know whether closed shops or open shops or one kind of con-
tract is good or bad, but I do know something about the rights of in-
dividual American citizens. I want to protect them. The way you
answered my question this morning leads me to believe that you want
to protect them financially as far as their vote is concerned.
You think it over.
Mr. Brew^ster. I have already been thinking about a resolution t<»
probably do the things that you are talking about in our conference.
Senator Goldwater. I just wanted to comment on tluit last state-
ment of Mr. Brewster.
Mr. Brewster, if you put a resolution such as we have been discuss-
ing here through your Teamsters' Union, I think that you will have
made the greatest contribution to the freedom of the workingman
that has been made since the Clayton Act of 1914.
I am glad to hear you say that you are thinking of that. I think
it is the first indication on the part of any responsible labor leader
in this country that finally the individual political freedom of the
members of their union is something to be concerned about.
Mr. Brewster. I will take the subject matter up with our boards
and I believe it will get a strong recommendation.
Senator McCarthy. I asked the reporter to mark a question that
Senator Mundt asked, and the answer. I am not going to ask him to
search through his notes there to find it now. I think that I can re-
member the question verbatim.
I was very much surprised at your answer to the question. I would
like to have you repeat that, if that is your answer. Senator Mundt.
in effect, as I recall said, ''Do you feel that a man in order to earn
bread and butter for his family should be forced to contribute to the
campaign of a man whom he opposes ? "
Your answer, I believe, was, "Yes ; if the majority of the union de-
cided he should so contribute."
I wonder if you can possibly mean that. It just does not seem right
at all.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1165
Mr. Brewster. I meant it in a broad sense of all tliintrs on majority
rule.
Senator McCarthy. On majority rule, I have two brothers who be-
long to unions and they have contributed to the political campaign
funds and they both, it so happened, were Eisenhower supporters and
their money went to try to elect Stevenson.
Is that not essentially wrong ? I am not speaking about Eisenhower
or Stevenson, and I do not think there was too much choice, you under-
stand, but do you really think that a laboring man should be forced to
contribute to the campaign of one candidate while he is strongly op-
posed to him and wants to support another candidate ?
Mr. Brewster. Senator McCarthy, I think that I am getting a liber-
al education, to say the least. Why don't you give me a little time to
think this over ? This thing is new to me. This is the first time I have
seen people in the political field that didn't want support financially of
labor. This is very refreshing to me.
Senator McCarthy. Mr. Brewster, it is not exactly new. We have
discussed this in the Senate and on the Senate floor and it has been in
the papers now for years and years, the question of the moral right or
the moral wrong of making a laboring man contribute to a candidate
whom he opposes.
I do not think it takes days for you to think that over. You are,
after all, the head of 11 States out in the West and I do not believe you
are dumb.
You certainly do not give that impression.
Mr. Brewster. Sometimes I wonder.
Senator McCarthy. I just wonder if you can answer that simple
question.
Mr. Brewster. I can answer it a little bit dilFerent. But let me say
this and I have been thinking of it : Say that we have some registra-
tion in our organization and we have 2,000 members and we have 200
Republicans and 800 Democrats.
I think that is about the proportion. We might say that, "Well, we
will contribute the proportion to the candidates." Would that be
a solution ? Then, we can take these people who are for a Republican
and they are taken care of. I am just trying to answer. I think you
mean this person who pays his dues, it all goes into probably one pot
and he is probably opposed to those people that are running for office.
Could we do it along the lines of a proportion of the amount of regis-
trations that we have ?
Senator McCarthy. If you are asking me a question, my answer is,
•'definitely not." I feel the only answer is that any man who wants
to support John Jones, Pete Smith, Nelly Gray, or anyone else can
contribute his own money and not go into a pot.
For example, I know that one of the Senators at this table, it is
not myself, was opposed by heavy funds from one of the unions. I
know that union members, and I receive mail from them, said their
money was being used to oppose this Senator, who was elected inci-
dentally, and they said that they were very much against that.
I just wonder if it does not follow as the night follows the day along
the line of Senator Mundt's questioning that you should not have a.
pot in which money is thrown by people of all political convictions and.
then have the majority use that money to support one man.
1166 IMPROPER ACTIVITIES IN THE LABOR FIELD
Does that follow ?
Mr. Brewster. Well, I think — I don't know. I don't think that all
of the people are going to agree with you.
The Chairman. The Chair will make this announcement :
That signal is for a vote in the Senate. We will have to recess
temporarily.
The conmiittee will return just as soon as it can discharge its duty
as Members of the Senate.
May I ask the audience please not to crowd at the door so that
we can have an opportunity to get there. We have a very limited time
in which to get there to vote.
(Brief recess.)
(Members present after the taking of the recess: The chairman
and Senator Ives.)
The Chairman. The committee will come to order.
All right, Mr. Kennedy, you may resume.
Mr. Kennedy. Mr. Brewster, we were talking about Palm Springs,
and your home there. Was there another establishment that was pur-
chased in Palm Springs, or Palm Desert ? Palm Springs, is that it ?
Mr. Brewster. Just lately you refer to, do you not ?
Mr. Kennedy. Well, you tell me. Within the last few years.
Mr. Brewster. Which one do you refer to ?
Mr. Kennedy. Were there a number of them that were purchased ?
Mr. Brewster. The only other one I know — don't you refer to the
one that has been in the papers ?
Mr. Kennedy. Over the period of the last year, or within the period
of the last 6 months ?
Mr. Brewster. Yes.
Mr. Kennedy. That is another establishment that has been pur-
chased in that area ; is that right ?
Mr. Brewster. Another investment.
Mr. Kennedy. Another investment that has been made ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. What was that investment made for ?
JMr. Brewster. That investment was made
Mr. I\j:nnedy. First, could you tell me what the investment is ?
Mr. Brewster. I couldn't give you the exact figure, but I think fur-
nishing and all would run roughly speaking about $35,000.
Mr. Kennedy. And what were you purchasing for $35,000 ?
Mr. Brewster. A three-apartment home on leased property, and
it is to be owned by the Western Conference of Teamsters. Property
down there is increasing in value all the time. Homes are getting
scarce. We contemplate on renting it on the established amount of
rent. This corporation, Braemar Corp., I think it is called, have a
rental setup under their supervision, that they screen your tenants
and rent it for a week or 2 weeks, or whatever it might be.
Mr. Kennedy. Who do you plan to rent it to ?
Mr. Brewster. Anyone that they would probably screen, and then
possibly some of our own people that would want to go down there
and rent it. They would pay the established price set up by the Desert
Corp.
Mr. Kennedy. Did you not tell the Braemar property people thaT.
this was for personal use only, or didn't your establishment ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1167
Mr. Brewster. I never discussed it with them. I never discussed it,
because he was the one that sold me on the idea that this thing could
be rented and you could make money, and he told me about how he
had a place and he could stay down there himself, and really make
money on his own apartment.
Mr. Kennedy. Isn't the reason that you purchased this apartment
in Palm Desert, then, so that you could rent it out and it would be
an investment for you ?
Mr. Brewster. That was the main reason.
Mr. Ejsnnedy. The primary reason ?
Mr. Brewster. The primary reason.
Mr. Kennedy. And John Sweeney handled negotiations or did you
handle negotiations ?
Mr. Brewster. John Sweeney handled most of the negotiations.
Mr. Kennedy. He wrote a letter that we have here with his signa-
ture, stating that the Desert Braemar, Inc., on the
The Chairman. Let that letter be presented to the witness for his
inspection.
(Document handed to witness.)
Mr. Kennedy. Here is another letter.
(The witness conferred with his counsel.)
(Document handed to witness.)
Tlie Chairman. Mr. Brewster, do you recognize that as a photo-
static copy of a letter '\
IMr. Brewster, I do.
The Chairman. Do you recognize the signature on it ?
Mr. Brewster. I do.
The Chairman. Whose signature is it ?
Mr. Brewster. John J. Sweeney.
The Chairman. Will you read the letter, please, sir ?
Mr. Brewster. It is addressed to Mr. Starr Brown, sales director.
Dear Sir: In connection witli application to purchase unit 35 in the Desert
Braemar, Inc., and in response to your letter of May 3, 1956, please be assured
that we fully understand that all apartments are for personal use only. If you
wish further information or assurance, please contact us.
I remember the discussion.
The Chairman. All right. That letter will be made exhibit No. 76.
(The document referred to was marked "Exhibit No. 76" for refer-
ence and will be found in the appendix on p. 1410.)
The Chairman. Next we have presented to you a photostatic copy
of another letter. Will 3'ou examine it, please, sir ?
Mr. Brewster. "The membership committee has requested" and it
is addressed to John Sweeney.
The Chairman. To who?
Mr. Brewster. John J. Sweeney. ^ ■.,:.)■
IVIr. Kennedy. I think that letter is earlier, is it not, the dfV^^Vpfi
that letter? ' ' -^^
Mr. Brewster. Yes. This was 3 days or so before. .jyj
The Chairman. In other words, the letter you read first is :i reply
to this, is that correct ?
Mr. Brewster. That is right.
The membership committee has requested additional information regarding
your purchase of the unit No. 35, in Desert Braemar, Inc. I am sure you can
89330— 57— pt. 4 5
1168 IMPROPER ACTIVITIES IN THE LABOR FIELD
understand in a development such as Desert Braemar, Inc., all apartments must
be used for personal use only. The committee has requested that you send us
a letter confirming this. A prompt reply is necessary to complete the processing
of your application. Upon receipt of this letter, we will forward to you our
plaiis to further complete this purchase. Thank you in advance for your coopera-
tion in this matter.
That was done from the standpoint •
The Chairman, That will be made exhibit No. 77.
(The document referred to was marked "Exhibit No. 77," for refer-
ence and will be found in the appendix on p. 1411.)
(At this point, Senator Mundt entered the hearing room.)
Mr. Brewster. That was done from the standpoint that you had
to clear the committee in order to get a place. And it was also
explained that they had a rental setup that they would screen it. In
other words. I could not rent tliat to anybody myself, unless it was
screened through it, and I think it means the same. It was just that
somebody Avould be personally responsible. They wouldn't have
everybody, Tom, Dick, and Harry, coming in there without first it
was being cleared with them. That is what was explained to me, and
that is why that particular language is in there. I think if you will
check further. Mr. Brauman or Brouman, whatever his name is. will
tell you that the jjeople in there have a right to rent their apartments
for any period of time, and that they will be — of course, they will
have to be screened and taken care of, and there is a small fee, I think,
of something like 10 percent that they charge for rental and collect-
ing the rent, and seeing that it is kept in order.
Mr. Kennedy. Do you remember the salesman, Mr. Bruce Thomas,
that you talked over this apartment with ?
Mr. Brewster. I remember a couple of salesmen. I don't remember
him particularly. He wasn't there.
Mr. Kennedy. Do you remember you had some conversation with
him about getting this apartment for yourself, personally ?
Mr. BiffiwsTER. I don't remember that, no.
Mr. Kennedy. Do you remember looking at this apartment Xo. o5,
a superdeluxe apartment, and you made some statements that you
would like it for }■ oursel f ? Do you remember that at all ?
Mr. Brewster. No, I don't remember that. In fact, I didn't want
35. I had to take it because there wasn't anything else available.
Mr. Kennedy. Do you remember having any discussion that you
wanted an apartment for yourself down there ?
Mr. Brewster. I don't remember that particularly, but I might say
that I might go down there and stay for a few days to kind of rest up
a little bit once in awhile.
Mr. Kennedy. Did you ever say to them afterward that you wanted
the apartment purchased, but you wanted it purchased in the name of
John Sweeney? Do you remember having any discussion with Mr.
Thomas about that ?
Mr. Brewster, No, I didn't.
Mr. Kennedy. Just before you were on your way to Honolulu ?
Mr. Brewster. No. I don't remember anything like that, other
than John Sweeney was the one that was taking care of it, and that
was the one that was voted on, that he would, I think in the minutes
of our council, that he would act as the agent for it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1169
Mr. Kennedy. When yon made a purchase of this property or it
was decided to make a purchase of this property, was that taken up
with the members of your board ?
Mr, Brewster. It certainly was.
:\Ir. Kennedy. ^^\as it explained at that time that you wanted the
apartment so that you could rent it out for investment'purj>oses^
Mr. Brewster. That certainly was ^one into.
Mr. Kennedy. I have here the minutes of the board policy commit-
tee dated March 2, 1956. It shows that IMr. Frank W. Brewster and
John .Sweeney were amono- those present. It states here :
^/?^^'\^^'^^''^T- '^^^"^ ^^"'^'^ i-egarding the project in Palm Springs a.-icl sug-
gested that the policy committee purchase certain property in Palm Springs Si
order that said property could be used by members of the policy committee and
other secretaries or representative^ of the teamsters who had suffered illnesses
which could be relieved through their complete relaxation.
Mr. Brewster. That is a portion of it.
Mr. Kennedy. Then it says, "Motion was made''
^x?^^\' ^Kf ^'^TER. All rio'ht. ' But we went into further discussion.
We don t keep a stenographic reijort of our minutes. We just write
down, ])robably, the fundamentals of the thing.
Mr. Kennedy. Then the fundamentals were that you wanted to have
the apartment so that the members of the ]3olicy committee and other
secretaries or representatives of the teamsters' who had sulfered ill-
nesses would be relieved throuofh their complete relaxation^
Mr. Brewster. Do you want me to finish what I was going: to say?
Mr. Kennedy. Go ahead. '
Mr. Brewster. I would like to. I explained that I thought that it
was a bad investment if we just used it for that purpose, that we could
rent it and the thing would pay for itself, and also enhance the value,
as we went along. I think that we can sell that right now at a profit.
Maybe so much misunderstanding is made about it that maybe we
might. "^
The Chairman. Mr. Brewster, you could not rent it and use it for
the purposes recorded here in the minutes, too, at the same time, could
you? '
Mr. Brewster. Couldn't do what ?
The Chairman. Could not rent it and use it for the purposes stated
here m the minutes of this meeting, could you ?
Mr. Brewster. You couldn't use it at the same time; certainly not.
ihe Chairman. There is nothing said in there about renting it in
the minutes of that meeting, at least. Did you have another meeting:
and discuss it later ^ '
Mr. Brewster. The discussion of setting up a committee was dis-
cussed, and I don't know how it didn't get into the minutes, that we
were going to apjjoint a committee in that area of three that would
also screen the people that probably went down there. It isn't ^oino-
to be a playhouse. ^
The Chairman. This is just inconsistent, that you bought it for
the i)urpose of letting the officers of the union and representatives
go down there to recuperate after an illness and at the same rime you
are going to rent it out. That is not consistent, is it ?
Mr. Brewster. I think it is, because T think that our illnesses don't
happen every day.
1170 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. If you had it rented, it would not be available for
the other purpose, would it ?
Mr. Brewster. We wouldn't rent it for a long period of time. It
is only rental for a week, 10 days, 2 weeks, or a month at the most.
That never would be rented for any more period of time than that.
The Chairman. It takes a lot of screening, then, if everybody is go-
ing to be screened that goes in there for a week, would it not ?
Mr. Brew^ster. I think there would be a list, just like you get a
screening of apartment houses and so forth. The screening, they
do it in that country.
The Chairman. It would take a week to do any screening, would
it not?
Mr. Brewster. They would probably have a list of the people that
would want to go down and get that kind of an apartment. I don't
tliink the mechanics of it are really tough at all.
Mr. Kennedy. Why did they write this letter saying that they
wanted to make sure that it would be used for personal use?
Mr. Brewster. Only from the standpoint that they didn't want it in
the face that it was commercial. I was told that absolutely they had
a setup there that would rent it and they would collect the rent and
screen the people, and they wanted it to go through them so that they
would be responsible.
Mr. Kennedy. That isn't what the letter says. It says they want
to make sure it is personal use.
Mr. Brewster. Well, going through the committee and so forth,
they asked for that. But I was told by Mr. Brauman that that was
absolutely going to be a service that they had for all people that rented.
There are people that don't go out there for a full smnmer — winter,
rather — and those people are in a position where they might want to
rent it for a full season. That is a procedure in every one of these
types of projects in Palm Springs.
Mr. Kennedy. Is this in the area in which you had your home ?
Mr. Brewster. No ; it is — well, it is all in the area. It is all in the
desert. It is all between a 13-mile area.
Mr. Kennedy. Wlien did you sell your home down there ?
Mr. Brewster. There you got me on dates again.
Mr. IvENNEDY. Approximately when did you sell your home ?
Mr. Brewster. I would say a little over 4 years ago.
Mr. Kennedy. 1953 you sold your home? You had it in 1954, did
you not ?
Mr. Brewster. Well, I just had it that season. Then it was
Mr. Kennedy. 1954?
Mr. Brewster. Well, gee, I am not positive on that, because
Mr. Kennedy. What is the name of the country club there ?
Mr. Brewster. There are two of them. There is Thunderbird, and
there is Tamerisk. It is between Tamerisk and Thunderbird.
Mr. Kennedy. Did you belong to the Thunderbird Club ?
Mr. Brewster. Yes: I belonged to the Thunderbird Club at that
time, because our employers were meeting down there a lot and I
wanted to have a place to
Mr. Kennedy. Did you pay for your membership in the Thunder-
bird Club yourself or did the western conference ?
IjMproper activities in the labor field 1171
Mr. Brewster, The western conference, because that was strictly —
I don't play golf. That is why I wanted it ; for the entertainment of
the people I took down there.
Mr. Kennedy. Here is a check for $400 to the Thunderbird Coun-
try Club.
The Chairman. Let the check be presented to the witness for his
examination and identification.
^Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. Do you want me to identify it ?
The Chairman. Yes, sir. What is the document you have before
you?
Mr. Brewster. It says, "Thunderbird Eanch and Country Club,
$400," signed by myself and Robert Graham.
The Chairman. Is that on union dues ?
Mr. Brewster. It comes indirectly out of union dues.
The Chairman. That check may be made exhibit No. 78.
(The document referred to was marked "Exhibit No. 78" for refer-
ence and will be found in the appendix on p. 1412.)
Mr. Kennedy. Without getting, Mr. Brewster, into things that are
too personal, I was wondering if you have your suits tailor made on
some occasion.
Mr. Brewster. What do they look like ?
Mr. Kennedy. On some occasion, do you have your suits tailor
made ?
Mr. Brewster. When I drove a team once, I saved up for a whole
year and got a tailormade suit, and I was the happiest man in town.
Mr. Kennedy. Now tell me, your suits, do you now have them on
some occasion tailor made for you ?
Mr. Brewster. Yes ; I have.
Mr. Kennedy. Does the Western Conference of Teamsters pay for
your suits, pay your tailor for your suits ?
Mr, Brewster. Not that I know of. I don't know
Mr, Kennedy. You would know that, would you not ?
Mr. Brewster. Yes. I don't know of anything.
Mr. Kennedy. Do you deny that they ever paid for the making of
your suits ?
Mr, Brewster. Not to my knowledge.
Mr, Kennedy. What?
Mr, Brewster. I think one time they voted to buy me a suit of
clothes for Christmas, if that is what- you are referring to.
Mr, Ivennedy. The Western Conference voted ?
Mr, Brewster. Yes. The board or whoever it was.
Mr, Kennedy, Well, so that was
Mr. Brewster. I don't recall who it was, but they voted to buy me
a suit of clothes.
Mr. Kennedy, A suit of clothes for Christmas ?
Mr, Breavster. Yes.
Mr, Kennedy. Did you get it at Christmas ?
Mr. Brewster. I don't know. I probably didn't need it, and I took
the certificate and got it when the other one got lace on it.
Mr. KJENNEDY. Is your tailor Mr. Santa relli ?
Mr, Brewster. That is right.
1172 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Mr. N. Santarelli ?
Mr. Brewster. That is correct.
Mr. Kennedy. Would you explain this check to the committee ?
The Chairman. The Chair presents to you what appears to be a
photostatic copy of a check, and asks you to examine it and identify it.
(Document handed to witness.)
Mr. Ivennedy. That is a Western Conference Check, Mr. Chairman.
(The witness conferred with his counsel.)
The Chairman. Have you examined the document ?
Mr. Breavster. Yes ; I have examined the document.
The Chairman. What is it ?
Mr. Brewster. It is made out to N, Santarelli.
The Chairman. It is a photostatic copy of the check ?
Mr. Brewster. It is a photostatic copy of the check, and in the
corner it savs, "Charged as a gift, Western Conference of Team-
sters, June 22, 1954, N. Santarelli, in the amount of $400.-' And it
is signed by F. W. Brewster and Gordon Lindsay.
The Chairman. Do you recall the incident ?
Mr. Brewster. ISTo; I do not, on this particular check, because this
isn't 1 suit, this is 2.
The Chair3Ian. You would sa}^ so ?
Mr. Brewster. Yes. I know so.
The Chair:man. Then you do recall the incident ?
Mr. Brewster. I don't recall the incident. I recall the price.
The Chairman. I am just trying to ascertain if you recall the oc-
casion when that was done, and the circumstances of it.
Mr. Brewster. No, I don't, other than this. We bought, at differ-
ent times, for some people that would do different things for us, and
you certainly couldn't give them any money, and some of them didn't
drink whisky, and we couldn't give them that. We bought them suits
of clothes. We have done that for a long period of time.
Senator Ives. ]Mr. Chairman, may I ask a question?
The Chairman. Let me ask one other question.
Was that in payment for your suits ; that check ?
Mr. Brewster. I don't think it was.
The Chairman. "V^Hio did you buy a suit of clothes for ?
Mr. Brewster. At that time ?
The Chairman. Yes.
Mr. Brewster. I don't recall.
The Chairman. All right. Senator.
Senator Ives. Mr. Chairman, I merely want to ask Mr. Brewster
whether this might be a check that he signed blank. Were you in the
habit of signing checks at that particular instance in blank ?
Mv. Brewster. I didn't want to go into that too much this after-
noon, but I certainly could have. Tliat was the time that Gordon
Lindsay was the secretary-treasurer, and he is dead.
Senator Ia'es. That is certainly a new thought around here.
Mr. Brewster. This job kills people off.
The Chairman. The check will be made exhibit No. Y9.
(The document referred to was marked "Exhibit No. 79" for ref-
erence, and will be found in the appendix on p. 1413.)
The Chairman. The Chair will say that the difficulties under
which committee members labor sometimes might have been calcu-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1173
latecl to have a little impairment, too. So if we can get better cooper-
ation, and get the facts before ns, it will help us all considerably.
Mr. Brewster. Let me say, Senator, you have been very kind, and
I appreciate it.
Mr. Kennedy. Mr. Brewster, you say this check was not used to
purchase a suit for you, or suits for .vou ?
Mr. Brewster. I don't believe it was. But I remember once, and
I don't remember any more than once, that they voted to buy me a suit
of clothes for
Mr. Kennedy. Did you go to Mr. Santarelli to get that suit of
clothes '.
Mr. Brewster. Yes.
Mr. Kennedy. Then you signed a check to Mr. Santarelli to get the
suit ?
Mr. Brewster. The bill was sent to the office and it was signed.
Mr. Kennedy. Would that be at Christmas that they voted a suit
of clothes to you ?
Mr. Brewster. Either Christmas or my birthday. I have a birth-
day, too.
Mr. Kennedy. But you do not remember this just several years
ago?
Mr. Brewster. I don't remember ; no.
Mr. Kennedy. You do not remember getting a tropical blue, 2-but-
ton, single-breasted suit, for $180.25 ?
Mr. Brewster. I will have to check my wardrobe.
Mr. Kennedy. But you do not remember that '\
Mr. Brewster. I think I got something that resembles that, but I
don't know when it was I received it.
Mr. Kennedy. Your memory on that is not very good ; is that right ?
You cannot remember that ? You cannot remember it ? Is that right ?
Mr. Brewster. Sir?
Mr. Kennedy. You camiot remember it ?
Mr. Brew^ster. I remember that I got a tropical, two-button, single-
breasted suit ?
Mr. Kennedy. Yes.
Mr. Brewster. I think I have.
Mr. Kennedy. Do you remember whether you paid for it or whether
union members' dues were used to pay for it ?
Mr. Brewster. No; I don't remember that. I don't remember
whether that was a present from the union or whether it was that par-
ticular suit. If Mr. Santarelli told you that, probably he remembers
it, and that probably could be it.
Mr. Kennedy. Well, do you remember wliat happened to the rest
of the $400 in the check that you sent him ; to Mr. Santarelli ?
]Mr. Brewster. No ; I don't.
Mr. Kennedy. Well, the suit cost $180.25, and you sent him a check
for $400. What happened to the rest of the money ?
Mr. Brewster. I don't know that, unless there was something else.
As I say, we bought other people around for doing certain favors, and
where we couldn't buy them anything in the world, they would take a
suit. I think that that is pretty common practice.
]\Ir. Kennedy. You say you bought suits for other people at Mr.
Santarelli's?
1174 IMPROPER ACTIVITIES IN THE LABOR FIELD
]^Ir. Brfavstkk. Yes.
]\Ir. Kennedy. Were teamster union funds used to purchase suits
for other teamster officials?
Mr. Bkewster, Not to my knowledge.
Mr. Kennedy. What about IVIr. Terry McNulty? Did you buy
any suil:^ for Mr. Terry McXulty ?
Mr. Brewster. I don't recall any.
Mr. Kennedy. Can you think back now and think whether you
did have a suit purchased for Terry McNulty and charged to union
funds 'i
Mr. Brewster. I don't remember,
Mr. Kennedy. Do vou think that that would be improper, if you
had?
Mr. Brewster. Unless it was taken up with the union, yes.
Mr. Kennedy. Do you think the union members would have had
to pass on it ?
Mr. Brewster. I think they should, yes.
Mr. Ki:nnedy. Did they pass on that ?
Mr. Brewster. I don't know.
Mr. Kennedy. Why would they want to purchase a suit for Mr.
Terry McNulty, who is the driver for your horse van ?
Mr. Brewster. Terry McNulty is 69 years old and he has been a
member of the union since 1909, and for probably all the good services
lie has done they might want to buy him a suit of clothes.
Mr. Kennedy. If that is the explanation for Mr. Terry McNulty,
Avhat would be the explanation for buying the suit and overcoat for
Mel Eisen?
Mr. Brew^ster. I don't know that that was done.
Mr. Kennedy. And union funds used to do that ?
Mr. Brewster. I don't know that.
Mr. Kennedy. Can you give any explanation for it at all?
Mr. Brewster. I cannot.
Mv. Kennedy. What about Mr. Harry Finks? Why would the
teamster union membership want to buy a suit of clothes for Mr.
Harold Finks at this tailor ?
Mr. BREA^'STER. Harry Finks is one of those people in California
tliat has spent most of his time around Sacramento. He represents
the Central Labor Council up there, and he has done many, many
f aA'ors for the teamsters organization.
Mr. Kennedy. Did the teamster membership pass on buying a
suit
Mr. Brewster. Will you let me finish it, please ? I am not taking
too much rime.
1 believe that that was discussed, at least, or polled by the executive
board, to buy Harry Finks a suit of clothes for the work that he did
in Sacramento, around the legislature.
Mr. Kennedy. Mr. Brewster, nowhere in the minutes that we have
gone over of the Western Conference of Teamsters does there appear
anything about buying a suit for Terry McNulty, a suit for Harry
Finks, who is a union official, or a suit for Mr. Mel Eisen, who is your
jockey, and a suit and overcoat, nor does there appear anyplace
in the minutes permission to buy a suit of clothes for Mr. Frank
Brewster.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1175
Mr. Brewster. I did not draw the minutes up. Sweeney drew tliem
up, and I don't know anything about it.
Mr. Kennedy. Mr. Chairman, I have an affidavit here from Nicho-
los Santarelli that I Avould like permission to read into the record.
The Chairman. You ma}' read it i]ito the record and then intei'ro-
gate the witness about it.
Mr. Kennedy (reading) :
March 14, 1957.
Affidavit
State of Washington,
County of King, ss:
I, Nicholos Santarelli, of my free will and with no promise of immunity, make
the following statement: That I presently reside at 1120 19th Avenue, North,
Seattle, Wash., and that I am employed as a tailor by Alt & Co., Seattle, Wash.
In 19.51 or 1952 when I had my own tailoring business in Medical Arts Building,
another tailor in that building died while participating in a VFW parade. His
widow came to me later and asked me to take over the account of I^rank W.
Brewster. Since then I have made a number of suits for Mr. Brewster, as well
as topcoats. I have also performed tailoring work for Mr. George Cavano. In
June of 1954 Mr. Brewster had a balance due me from some suits I had made. He
gave me a check for $400 from which I deducted the amount due and wrote a
check to Mr. Brewster for the balance. I have since been told that it was a
union check, but I made no note of that fact at the time I received the check.
In October of 1954 I moved to San Mateo, Calif., to live with my son, and I went
to work for a tailor in San Francisco named Frank Corvin. In January of 1955
Mr. Frank Brewster contacted me in San Francisco about making some suits
for presents for three men. These men all later came into the shop in San Fran-
cisco to be fitted. I made a suit for Terry McNulty, a suit for Harry Finks, a
teamsters' union official from Sacramento, Calif., and a suit and overcoat for
Mel Eisen, who I understood to be a trainer for Mr. Brewster's horses. I subse-
quently received a teamsters' union check in the amount of $546 in payment of
this transaction. The check was given to me by Mr. John J. Sweeney.
These are the only occasions on which I recall receiving union checks. I have
continued to serve Mr. Brewster and made some suits for him in August or Sep-
tember of 1956.
I believe all the above statements to be the truth to the best of my knowledge.
Nicholas Santarelli.
Subscribed and sworn to me this date :
Francis N. Cashman,
Notary Public
Mr. Chairman, we have here a check from the Western Conference
of Teamsters dated January 10, 1955, pay to the order of N. V. San-
tarelli, $546, and signed by Frank W. Brewster and John J. Sweeney.
The Chairman. Let the check be presented to the witness for his
examination and identification.
(Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Griffin. May I see the original of the affidavit, please ?
The Chairman. Yes, sir, you may.
(Document handed to counsel.)
Mr. GRimN. This is a carbon.
The Chairman. The affidavit has been read into the record.
These affidavits, you understand, when they are read, will be printed
in full, all of them.
Will you examine the check, the photostatic copy of the check, Mr.
Brewster, and see if you identify it as your signature ?
Mr. Brewster. Yes, sir. The check is made out to N. V. Santarelli.
The Chairman. What is the date of it ?
Mr. Brewster. What is what; ?
The Chairman. The date of the check.
1176 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Brewster. January 10, 1955, for $546, signed by myself and
John Sweeney.
The Chairman. All right.
That check may be made exhibit No. 80, for the record.
(The document referred to was marked "Exhibit No. 80," for ref-
erence and will be found in the appendix on p. 1414.)
The Chairmax. Mr. Counsel, have you any questions about it?
Mr. Kennedy. I would like to find out, Mr. Brewster, what vou did
with the $219.75.
Mr. Brewster. I certainly don't remember getting $219.75. I don't
believe I did.
Mr. Kennedy. Mr. Santarelli says that he sent you that money,
$219.75.
Mr. Brewster. Sent it to me or gave it to me in cash ?
Mr. Kennedy. I believe he said he sent it to you, as a check, and it
cleared through his bank account.
Mr. Brewster. Have you got the copy of the check there ?
Mr. Kennedy. We have the bank account which shows that it
cleared through.
Mr. Brewster. I certainly don't remember the transaction and I
will make it a point to see Mr. Santarelli as soon as I get back.
Mr. KJENNEDY. Why did you make a check out to him for $400
originally ?
Mr. Brewster. That I don't know.
Mr. Kennedy. ]Mr. Brewster, what I don't understand is all this
money keeps going out of the Western Conference of Teamsters, and
you are the president, and you don't seem to have any idea where it is
going.
Mr. Brewster. Not all the
Mr. Kennedy. Excuse me ?
Mr. Brewster. You made a statement.
Mr. Kennedy. Is it true that you have no idea where this money
is going?
Mr. Brewster. It is true that I don't know where all of it is going.
Mr. Kennedy. "\'\'1io Avould know if you do not knov\', Mr. Brewster?
Mr. Brewster. Well, John Sweeney would have known.
Mr. Kennedy. Would you allow somebody who was head of a local
who handled his affairs like you have been liandling the Western Con-
ference affairs, would you allow him to stay in office ?
Mr. Brewster. I don't know whether I have been handling them
in the light that you try to make out, so I wouldn't pass judgment on
what I would do to anybodj^ else.
Mr. Kennedy. You have your name there on a check for $400, you
signed a check for $400 to your tailor, for payment of a suit of clothes.
Will you explain to the connnittee if you have a proper stewardship
of the funds that are in your possession, whether you consider that
proper stewardship of those funds ?
Mr. Brewster. I can't at the ])resent time.
The Chairman. Mr. Brewster, obviously you got $400 out of the
teamsters union funds ; did you not ?
Mr. Brewster. That looks like it.
The Chairman. Well, does it look like anything else ?
You paid a bill out of that $400 of $180.25. Where is the rest oi
the money and what did you do with it ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1177
Mr. Brewster. I am not sure at the present time.
The Chairman. All right.
Mr, Kennedy. Mr. Brewster, I want to call your attention to sec-
tion 9-54^010, which defines larceny in the State of Washington.
Every person who with intent to deprive or defraud the owner thereof, having
any property in his possession, custody, or control, as bailee, factor, pledgee,
servant, attorney, agent, employee, trustee, executor, administrator, guardian,
or officer of any person, estate, association, or corporation, or is a public officer,
or a person authorized by agreement or by competent authority, to take or hold
such possession, custody, or control, secretes, withholds, or appropriates the same
to his own use or the use of any person other than the true owner or person en-
titled thereto, is guilty of larceny.
"Would you say, Mr. Brewster, where you have used union funds to
pay your oavu personal bills, where you have used union funds to pay
the personal bills of your horse trainer, where you have used union
funds to pay tlie personal bills of your jockey, do you not feel that
you are violating this section 9-5-1-dlO in the State of Washington?
(The witness conferred with his counsel.)
]Mr. Brewster, That is a legal question, and I am not capable of
aDswei'irig.
Mr. Kennedy. You do not consider tliis a misappropriation of
union funds?
Mr. Brewster, I Iiaven't for any selfish gain, and I can prove that
before this committee adjourns.
Mr. Kennedy. What is tlie explanation of using union funds to
pay the bills of your jockey, of your horse trainer, to buy suits of
clothes for you ? Can you give us some explanation for it?
Mr. Brewster. I didn't know that that was done.
Mr. Kennedy. To repair your horse van?
Mr. I^REWSTER. I didn't know^ that that was done.
Mr. Kennedy. Who knows about it, then, if you wouldn't know
about it '? Your name is on the checks used to pay this.
Mr. Brewster. That is right. I signed checks in blank, and they
could be made out, and someone else could instruct them,
Mr. Kennedy. Would you say this is a responsibility of John
Sweeney, then ?
jS'Ir. Brewster. Some of it was, yes. I don't want to keep on harp-
ing on it. but it was just like it was Gordon Lindsay before that, and
Buddy Graham before that.
Mr. Kennedy. Everybody but Frank Brewster?
Mr. Brewster. And like it was my responsibility when I was
secretary-treasurer.
Mr. Kennedy. But everybody is responsible but Frank Brewster
for the payment of your personal bills ?
Mr. Brewster. Everybody including Frank Brewster.
Mr. Kennedy. Would you take action, Mr. Brewster? Tell me
this : Would you take action against a local union official who you
found to be ])aying his personal bills with union funds?
Mr. Brewster. If I found that he was absolutely guilty, yes. I
would go into the case thoroughly. I wouldn't prejudge.
Mr. Kennedy. "Wlio is going to judge your case to find out whether
you have misused union funds ?
Mr. Brewster. I believe our executive board in the Western Con-
ference and the membersliip is.
1178 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. Are they going to l^e able to vote on it ?
IVIr. Brewster. Yes, they are going to vote on it.
Mr. IvENXEDY. What procedure are you going to follow ? Are you
going to make an accounting to all the membership of what you have
done with the union funds ?
Mr. Brewster. We are going to make an accounting to all local
unions and so forth.
Mr. Kennedy. Are you going to tell them about it, explain all of
these things to them.
jSIr. Brewster, To the best of my ability.
Mr. Kennedy. There are other things that took place prior to 1954
in the Western Conference funds. How are you going to explain
those things to them when the union records are destroyed ?
Mr. Brem'ster. I am not sure that they were.
Mr. Kennedy. Nobody will every know, will they, since those
records are destroyed ?
Mr. Brewster. You will not know that they were, either.
Mr. Kennedy. Excuse me?
Mr. Brewster. They will not know that there were.
Mr. Kennedy, But you told us that you didn't do any of these
things, and we have some records, at least, to indicate that you mis-
used union funds in this way.
Mr. Griffin. Mr. Chairman, isn't that a question for the committee,
facts for the committee to determine later and not the counsel to deter-
mine at the present time ?
Mr. Kennedy. I was just asking the question what he is going to
do about it, Mr. Griffin, just trying to find out what he is going to do
about it.
The Chairman. This witness occupies a very high and responsible
position, a position of trust, a position of stewardship of funds paid
into an organization that he heads for the purpose of serving the mem-
bership thereof. On the face of it, it is clearly indicated that some
of those funds have been misappropriated.
The witness himself who received the benefit of them, on the face of
the record, was a responsible officer, authorized to administer those
funds, and sign the checks that brought about, if there were mis-
appropriations, the misappropriations of the funds. So on the basis
of that, any questions that pertain to the action of this official of the
union in carrying out his trust and his responsibilities, any action of
his that amounted to a conversion of the funds, certainly this com-
mittee has a right to interrogate him about them, and final judgment
may be passed, as he says, by his union, or by some process they have
in their local organization.
But this committee has the responsibility of developing these facts
with a view of determining what legislation may be needed to prevent
a recurrence in other unions, and in this union : whatever legislation is
necessary to protect the union funds that are paid in by members
who have to belong to the union if they are employed.
So I think the committee has a perfect right to go into it.
Proceed,
Mr, Kennedy, I would like to find out, Mr, Brewster, about the
gift certificates that you have from the Western Conference of Team-
sters, what procedure you follow as far as gift certificates are con-
cerned. Will you explain that to the committee ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1179
Mr. Brewster. Well, they embrace a lot of people around Christ-
mastime: Airline employees that get reservations, people in hotels
that we call to get reservations, employees aromid hotels where we get
certain services and people that have generally — not to me person-
ally — generally have performed a service for the people that travel
m the Western Conference of Teamsters.
Mr. Kennedy. You say not to you personally. You mean you
didn't receive any of these gift certificates?
Mr, Brewster. No.
Mr. Kennedy. You never received any of them ?
Mr. Brewster. They are all in a position where they are put out to
all of these people.
Mr. Kennedy. They went to outsiders, then, is that right ?
Mr. Brewster. Yes. They might have gone to some of the members
in the organization around Christmastime.
Mr. Kennedy. What about you personally? You said that you
did not receive any of them ?
Mr, Brewster. I might have received one or two. I don't know.
Mr. Kennedy, Amounting to how much money ?
Mr. Brewster. I don't know how much. I don't think very much.
Mr. Kennedy. Is it your testimony that you did receive some of
these gift certificates ?
Mr. Breavster. I might possibly have received them.
Mr. Kennedy. Why would they be giving gift certificates to you,
or why would you be giving gift certificates to yourself?
Mr. Brewster, Why would I to myself? Because I think that I
have been included.
Mr. Kennedy. In what?
Mr. Brewster. In getting a gift for Christmas.
Mr. Kennedy. Well, would you decide what kind of a gift you were
going to get for Christmas from the Western Conference of Team-
sters ?
Mr, Brewster. It would be comparable with what anybody else
got,
Mr. Kennedy. You say now that you did receive some of these gift
certificates ?
Mr. Brewster. I believe I did.
Mr. Kennedy. You did ?
Mr. Brewster. Yes. It is possible that I did.
Mr. Kennedy. Can you refresh your recollection and try to tell us
how many gift certificates you received ?
Mr. Brewster. I don't think it is very large. I wouldn't try to
make a statement.
Mr. Kennedy. What is very large ? What is not very large ?
Mr, Brewster. It is less than $150.
Mr. Kennedy. That you have received in gift certificates?
Mr. Brewster. Yes.
Senator Mundt. It used to be a 12-pound ham.
Mr. Kennedy. You received less than $150 worth of gift certificates ?
Mr. Brewster. That is my recollection.
Mr. Kennedy. That is your what ?
Mr. Brewster. Recollection. I am just going by guess.
Mr, Kennedy. Do you think it is possible that you could have re-
ceived more than that ?
1180 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Bbewster. I don't think so.
Mr. Kennedy. Could you have received twice as much as tliat?
Mr. Brewster. I don't think so.
Mr. Kennedy. Is it possible ^
Mr. Brewster. No, I don't think — I don't think I did. You ask if
something is possible, I don't think I did.
Mr. Kennedy. You had some of those aift certificates to Littler?
Mr. Brewster. That is right.
Mr. Kennedy. $3,956.41?
ISIr. Brewster. That is right.
Senator Mundt. Before we get into the particular gift certificate,
Mr. Brewster, will you tell me who determines who gets these gift
certificates ? Do you do that individually i Does the policy do that ^
Do you have a committee who does that ?
Mr. Brewster. The policy committee does that. I think the action
will show it.
Senator ]Mundt. Does the policv committee determine the recipients
of the gifts?
Mr. Brewster. Yes, sir.
Senator Mundt. Is it customary for the ])olicy committee to include
itself in on the gifts?
Mr. Breavster. I don't think that they have.
Senator Mundt. You would know.
Mr. Brewster. No, they haven't. No,
Senator ]Mundt. Do they ever give any gifts to the poor old team-
ster out there on the truck who is paying the dues for this whole
carnival of gifts ?
Mr. Brewster. I am glad jou brought that up. Every time he
gets a paycheck it is on there.
Senator Mundt. What is on there ? A gift ?
Mr. Brewster. That wage that we get. That increase in the things
that we are getting for him from time to time, his health and welfare.
There is $25 million that was paid out in health and welfare that he
never would have got unless we saw that he got it. Last year in the
11 Western States
Senator Mundt. Of course the whole organization benefits in that.
The officers get better salaries, get better expense accounts, and the
teamsters get better wages. I recognize that. But I am thinking
about the fellow at the end of the line who seems to be the forgotten
man in this union business, the fellow who pays the dues, the fellow
who has to pay them to get a job for his family. I wonder if out of
generosity of "their hearts, when the policy committee is passing out
gifts to one another, if they ever give one to the man who drives a
truck.
Mr. Brew^ster. We do that for the needy around that time, around
Thanksgiving, too.
Senator Mundt. This is different. The policy committee members
are not needy. Mr. Brewster is not needy. You do that because of
the spirit of Christmas, or it is in the air to give gifts. I am not
necessarily criticizing that, but I am wondering why in the world the
fellow who pays the dues does not get a gift at Christmas ? Are there
too many of them, maybe, or you cannot give them to all, or what ?
( Tlie witness conferred with his counsel.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1181
Senator Mundt. He pays for them ; does he not ?
Mr. Brewster. There probably isn't enough to go around.
Senator Mundt. He pays for tliem and there is not enough to go
around, and the policy committee is right there at hand so they take
them.
Mr. Brewster. I didn't say the j)olicy committee did it.
Senator Mundt. They vote them out. They determine it. I am
trying to find out who plays Santa Glaus. Out in my country, the
fellow who plays Santa Claus does not always keep all the gifts him-
self ; he gives them out. But it seems to me that the fellows who are
playing Santa Claus here get in on the dispensation of the largess;
right?
Mr. Brewster. You probably have a good philosophy.
The Chairman. The Chair presents to you a check, a photostatic
copy of a check, dated January 18, 1955, Check No. 8093, drawn on
the Western Conference of Teamsters, signed by you as president, and
Mr. Sweeney as secretary-treasurer.
I ask you to examine the check and identify it.
(The document was handed to the witness.)
(The witness conferred with his counsel.)
Mr. Brewster. January 18, 1955, check No. 8093, made out to Littler
for $3,956.41, signed by myself and one John Sweeney.
Tlie Chairman. What is that check for ?
Mr. Brewster. That was for the things that we were talking about,
gift certificates.
The Chairman. For gift certificates ?
Mr. Brewster. Yes, sir.
The Chairman. You had purchased the gift certificates ; is that
correct, from this firm ?
Mr. Brewster. That is right.
The Chairman. I hand you here wliat I believe are eight of those
gift certificates and ask you to examine them and see if you can identify
them.
The check will be made exhibit No. 81.
(The document referred to was marked as "Exhibit No. 81" and will
be found in the appendix on p. 1415.)
(The documents were handed to the witness.)
The Chairman. You might also note the endorsements on the back
of it.
Mr. Brewster, have you examined them?
Mr. Brewster. Yes ; I have.
The Chairman. Will you identify them for us, please, sir ?
Mr. Brewster. One is for $20.60, a merchandise order. No. 72.
The Chairman. Just identify them. Tell us what they are.
Mr. Brewster. Thev are gift certificates, merchandise orders. This
one is $20.60.
The Chairman. Are those part of the gift certificates this check just
presented to you was in payment of ?
Mr. Brewster. It is not my signature on the back.
The Chairman. Did you get the gifts I
Mr. Brewster. I don't believe I did. That is not my signature on
the back. ' '■
The Chairman. It is your name, but not your signature ; is that Avhat
you are saying ?
1182 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. This isn't my writinj>- at all. I think it is possible
that they went down there and they wanted to know who .^ave them to
them, so they just put the name on the back of them.
The CHAnmAN. There is one there for $154; isn't there, or a little
over that ?
Mr. Brewster. Yes, sir. That is for my daughter. That was in
the way of a bonus.
The Chairman. That was in the way of a bonus for your daughter ?
Mr. Brewster. Yes, sir.
The Chairman. Is your daughter working there ?
Mr. Brewster. She is working in the building; yes, sir.
The Chairman. In the building? I am talking about working for
the teamsters.
Mr. Brewster. She is working in the security office.
The Chairman. Security office of what ?
Mr. Brewster. Of the Western Conference of Teamsters. There
is one here for $20.60 that has my signature on.
Mr. Kennedy. The total is $175.10.
The Chairman. That is of the eight presented ?
Mr. Kennedy. Yes. The ones that appear that have Frank
Brewster's name on the back of them are endorsed "Frank Brewster,"'
^^'hether he got them or not. They are endorsed "Frank Brewster."
Mr. Brewster. I did this, too, Mr. Chairman. I want to explain
this part of it, please.
The Chairman. All right.
Mr. Brewster. If I thought at diiferent times that there was some-
thing that I knew someone would like, such as a hat that I had his
size and so forth, or some personal thing that I would like to give, I
took — some of them I could have done that, and I remember doing it
in certain instances — I don't know how many — and bought them and
signed my name to it and gave them as personal gifts instead of a gift
certificate.
The Chairman. You mean tliat you would give them in the name
of "Frank Brewster" and the union Avould pay for them?
Mr. Brewster. No. Under the Western Conference of Teamsters.
The Chairman. Sir?
Mr. Brewster. I gave them to them under the Western Conference
of Teamsters, because he knew that that is where it came from. I
never tried to build myself up on this type of gratuities over the peo-
ple that did us some favors over a long period of time, and we have a
lot of them.
The Chairman. Those certificates will be made exhibit Nos. 82-A,
82B, 82C, and 82D.
(The documents referred to were marked as "Exhibits 82-A through
82-D, inclusive," and will be found in the appendix on pp. 1416-1423.)
Mr. Kennedy. We have 2 other certificates, $154.50 and $25.75.
They are not endorsed.
The Chairman. Can you make any explanation of that $154 item ?
Mr. ICennedy. It is the two of theni together.
The Chairman. There are two of them together. Let's take the
$154 one first. He said the other $154 one was a bonus to his daughter.
(The documents were handed to the witness.)
(The witness conferred with his counsel.)
JGVIPROPER ACTIVITIES IN THE LABOR FIELD 1183
Ml". Brewster. I don't know. They are required to put their
names on them. I don't know. I wouldn't dare say who got them,
because I have no way of telling.
The Chairman. Those two may be made exhibits Nos. 83-A and
83-B.
(The documents referred to were marked "Exhibits 83-A and
83-B," and will be found in the appendix on pp. 1424-1425.)
Mr. Kexxedy. Those two gift certificates were credited, totaling
$180.25, to Mr. Frank Brewster's account at Littler's.
Mr. Brewster. That could have been the same thing — that I made
personal purchases.
Mr. KENNEDY. That is right ; you made personal purchases.
Mr. Brewster. Wait a mniute. For some people.
Mr. Kennedy. Who were the "some people" ?
Mr. Brewster. Well, there is different people that I wanted to give
a personal Christmas present for. That wasn't for my own use. It
was for someone else.
Mr. Kennedy. This, again, is union funds. Are the union members
allowed to find out how you spent their money ? How
Mr. Brewster. I know I spent it in the right manner.
Mr. Kennedy. Could you tell us ?
Mr. Brewster. I went and bought them merchandise and gave to
them without going through the gift certificate.
If I can, I like to get them and then figure out who would like a per-
sonal gift instead of a merchandise order, and I try and make per-
sonal gifts instead of the other type of gift.
Mr. Kennedy. We go back to the same question, if you can give us
any explanation of the $180.
Mr. Brewster. That is all. That is what I believe happened.
Mr. Kennedy. Here are 5 more, making a total of $164.80, again
whicli were credited to your account at Littler's.
The Chairman. Bear in mind, all of these are dated in December
1954, all that have been presented to you. We are trying to ascertain
what that check was for, and if you can give any explanation to what
it paid for. Please examine those.
Mr. IvENNEDY. The last 5 is a total of $164.80.
(The documents were handed to the witness.)
(The witness conferred with his counsel.)
Mr. Kennedy. Go ahead.
Mr. Brewster. I do not purchase very much at Littler's. About
the only thing I buy there is a hat.
Mr. Kennedy. That is correct. Shirts, ties, binoculars — do you
remember getting the binoculars ?
Mr. Brewster. Yes ; I remember getting binoculars.
Mr. Kennedy. These really are not gifts, Mr. Brewster. You pur-
chased the binoculars, for instance, with the first gift certificates I
showed you on August 22, 1955. Did you give those binoculars to
someone ?
Mr. Brewster. Yes ; I did.
Mr. Kennedy. To whom did you give them ?
Mr. Brewster. I gave them to a fellow by the name of Charles Tate.
Mr. Kennedy. Mr. Charles Tate ?
Mr. Brewster. Yes.
1184 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. That is Mr. Charles Tate from Seattle, Wash. ?
Mr. Brewster. Yes.
Mr. Kennedy. And he is now port director in San Francisco ?
Mr. Brewster. That is right.
Mr. Kennedy. Did you tell him at that time that this was a gift
from the Western Conference of Teamsters to him ?
Mr, Brewster. I did.
Mr. Kennedy. You told him it was from the Western Conference
of Teamsters ?
Mr. Brewster. Yes.
The Chairman. Let the Chair make those other certificates there
exhibits Nos. 84-A, 81-B, 84-C, 84-D^ and 84-E.
(The documents referred to were marked ''Exhibits 84—A through
84-E, inclusive,-' and will be found in the appendix on pp. 1426-1430.)
Mr, Kennedy. Here are 2 more, making a total of $92.70.
The Chairman. You may examine those.
Mr. Kennedy. It was used partially to renovate your hat.
(The documents were handed to the witness.)
Mr. Brewster. I don't remember that instance.
The Chairman, You recognize those as gift certificates about which
you have been testifying'^
Mr. Brewster, Yes ; I do.
The Chairman. They may be made exhibit Xo. 85.
(The documents referred to were marked "Exhibits 85-A and 85-B/'
and will be found in the appendix on pp. 1431-1432.)
Mr. Kennedy. Tlie total is $612.85.
The Chairman, Of all of those that have been shown ?
Mr, Kennedy. That is correct.
The Chairman. All of those that have been made exhibits total
what ?
Mr. Kennedy. $612.85.
The Chairman. Proceed.
Mr. Kennedy. Let me ask you this, Mr. Brewster: When you go
on a trip for teamster business, to whom do you make your accounting
as far as expenses are concerned ?
Mr. Brewster. I make it to my secretary.
Mr. Kennedy. Who would that be?
Mr. Brewster. Ann Xielson.
Mr. Kennedy. Ann Nielson, up in Seattle ?
Mr, Brewster, Yes,
Mr, Kennedy, And from whom does she collect for your expenses ?
Mr. Brewster. The Western Conference of Teamsters.
Mr. Kennedy. You get your expenses from the Western Confer-
ence of Teamsters ?
Mr. Brewster. I do.
Mr. Kennedy. Do you ever get your expenses from the Western
Conference of Teamsters and then the expenses for the same period
of time from anyone else ?
Mr. Brewster. I alternate. I get some from the International
Brotherhood of Teamsters.
Mr. Kennedy. Let me ask this
Mr. Brewster. I don't get duplicate expenses.
Mr. Kennni:dy. You do not?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1185
Mr. Brewster. No.
Mr. Kenxedy. You never do that. Why do yoii get your expenses
sometimes from the international and sometimes from the western
conference ?
Mr. Brewster. }5ecanse I felt that considerable of my work was
international work, and I felt that on most occasions on my expenses
they should pay them when I am out of toAvn.
Mr. Kennedy. So on international work, you oet them from the
international, and when your are on western conference, you ffet them
from the Avestern conference ^
Mr. Brewster. That is the idea.
Mr, Kenxedy. But you don't get them from both, duplicate ex-
i:)enses from both ;'
Mr. Brewstp:r. Xot du])licate expenses: no.
Mr. Kenxedy. Do you get duplicate moneys ?
Mr. Breavster. No, not duplicate moneys.
(At this point Senator (Toldwater entered the hearing.)
Mr. Kexxkdy. Mr. Chairman, could I ask this Avitness to ste]) aside
for a moment and ask Mr. Bellino to step to the stand?
The Chaikman. You may step aside for a moment.
]Mr. Bellino, come forAA'ard, please.
(Present at this point: The chairman and Senators Ives, Mundt,
and Goldwater.)
TESTIMONY OF CARMINE S. BELLINO— Resumed
The Chairmax. Mv. Bellino, you were previously sworn today.
You may proceed, CounseL
Mr. Kexnedy. Mr. Bellino, you liaA^e made a study of the expenses
of Mr. Frank Brewster, have you not ?
Mr. Bellino. Yes, sir,
Mr. Kexnedy. And you made a study of the expense vouchers that
he submitted to the Avestern conference and also to the International
Brotherhood of Teamsters?
Mr. Belling. Yes, sir.
Mr. Kexxedy. Have you found, from the sample testing that you
have made, any duplication of expenses ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Could you explain or give us a month, for instance,
as an example on that ?
Mr. Bellino, We examined the expense vouchers for the year 1954.
For example, on April 2, 1954, the expense voucher submitted to the
international brotherhood reflected that he was at Vancouver for 1
day and he charged $22.50, $15 for a hotel and $7.50 for other in-
cidentals.
For the same day, the expense account which he submitted to the
western conference reflected $15 for hotel, $12.23 for meals, and
$2,27 for other incidentals, or a total of $29.50, which he received from
the western conference for the same day for Avhich he had received
from the international $22.50.
Similarly, on April 5, 1954. he shows a Western HigliAvay Insti-
tute conference at Palm Springs, April 5, and 7, 1954, and he
charged the interiiafional for ;> days, a total of $67.50. On April 5,
1186 IMPROPER ACTIVITIES IN THE LABOR FIELD
on the
hotel,
hotel, ^ , ^ .
$8 for meals, and $3.50 for other incidentals, or a total of $98.25 paid
to him for those 3 days by the western conference, and $67.50 paid to
him by the international brotherhood,
(At this point Senator McNamara entered the hearing.)
Mr. Belling. That continues on various days throughout 1954.
At the end of 1954, we have a total paid by the western conference of
$1,214.89, and for which on the same days he received $990 from the
international.
Mr. Kennedy. That is for the same days ?
Mr. Belling. Yes, sir.
The Chairman. Those are identical dates ?
Mr. Belling. These are on the identical dates only. We selected
the items where there were identical charges for both dates.
Mr. Kennedy. Would you give those figures again, please?
Mr. Belling. The international brotherhood paid him $990 and
the Western Conference of Teamsters paid him $1,214.89.
The Chairman. That is just for 1 year?
Mr. Belling. That is just 1 year ; yes, sir.
The Chairman. Have you checked any other years ?
Mr. Bellino. We have scanned 1955, but have not completed the
data, but we find a similar pattern.
The Chairman. The same practice continued in 1955 ?
Mr. Belling. Except that in 1955 he did not charge for a hotel,
but the meals would be much greater.
Mr. Kennedy. You mean on the duplication ?
Mr. Belling. On the duplication ; yes.
The Chairman. Is there anything further of this witness?
If not, you may stand aside for the present.
Mr. Brewster, you may return to the stand.
(Present at this point : The chairman and Senators Ives, McNamara,
Mundt, and Goldwater.)
TESTIMONY OP FKANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIPPIN AND JOHN K. PICKENS— Resumed
The Chairman. Mr. Brewster, you have heard the testimony here
of the auditor of the staff who has checked these records. Do you
wish to make any comment about it?
Mr. Brewster. Yes; I do. I don't believe that is a duplication.
I think it is an addition. The international allows a flat amount.
If I go anyplace and my expenses that I incur are in addition to that,
then that is put down. It might be put down as hotel or additional
hotel expenses, or whatever it is. That is in addition to the set amount
that the international gives me. By no intent was there ever figured
to be duplication.
The Chairman. Each one of them indicated they were adequate.
I mean, the amount of hotel bill, the amount of meals, and so forth.
Each separate bill for the same day, either of them would indicate
they were adequate.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1187
Mr. Brewster. Well, at that time, Mr. Chairman, at that time,
down in Palm Springs, I was a WHI, the Western Highway Institute
met down there, and that certainly wasn't adequate.
The Chairman. That is just one time. There were several others.
]Mr. Brewster. The rooms and so forth that I get, the things that
I get in addition to that, expense of those rooms and the things that
I have to do in it, the suites and so forth, to have conferences, it isn't
ample to take care of it.
The Chairmax. Why isn't it ample ? If you are working for the
international on a day, and you have your expenses for the interna-
tional, why can't the international treasury bear the expense, what-
ever it is? I just don't understand it.
Mr. Brewster. Because by constitution they cannot pay any more
than that.
The Chairmax. What is the limit under the constitution ?
Mr. Brewster. It is $20 a day.
The Chairmax. $20 a day for expenses? "Wliat is the limit of
the western conference?
Mr. Brewster. ISTo limit.
The Chairman. No limit. I think if vou had submitted more
lan $2
correct '<
Mr. Brewster. I don't
The Chairman. Let me ask you, Mr. Bellino, and you are still
under oath, whether there were any bills submitted to the interna-
tional in excess of $20 a day ?
Mr. Bellino. $22.50 a day.
Mr. Brewster. That is $15 a day and $7.50 incidentals. I am
sorry. I am glad for the correction.
The Chairman. All right, it is $22.50 a day, then?
Mr. Brewster. That is right.
The Chairman. Is there anything further?
Mr. Brewster. No, sir.
The Chairman. Why couldn't you remember that a while ago •
]Mr. Brewster. "Wliat?
The Chairman (continuing). Wlien we asked you about these
duplicate bills for the same day ?
Mr. Brewster. I didn't remember them until it was drawn to my
attention. Now I remember them. I have to have a little lead and a
clue. They give that on the $64,000 question.
The Chairman. Well, we had a $9*9,000 question here this morning.
Proceed.
Mr. Kennedy. Mr. Brewster, I asked you whether you charged the
Western Conference of Teamsters and the International Brotherhood
of Teamsters when you made the same trips, and you said no, abso-
lutely not :
When I am on western conference business I charge the Western Conference
of Teamsters, and when I am on international business, I charge the international
for the expenses.
Mr. Brewster. Sometimes I am on business for both. They should,
in my opinion, probably split.
Mr. Kennedy. For instance, you have here, "Dear Sir," and I will
be glad to show you the letter, December 31, 1953. "I herewith list
1188 IMPROPER ACTIVITIES IX THE LABOR FIELD
my expenses," to the international. "incniTed in connection with my
attendance at various western conference meetings this month,'' and
then yon have 8 days, and yon receive $180, and you say it is western
conference meetings.
During the same period of time you were collecting from the West-
ern Conference of Teamsters.
Mr. Brewster. That is right.
Mr. Kennedy. What explanation can you give me?
Mr. Brewster. Because I had subject matters that pertained to the
international that I was taking up at the western conference. That
isn't hard to figure out.
Mr. Kennedy. And you were charging both of them ?
Mr. Brewster. I was charging both of them, but they were all
being spent. Let's put it that way.
Mr. Kennedy. I still don't understand, in view of your answer to
me of a few minutes ago, where you said that you didn't ever do any-
thing like that.
Mr. Brewster. I do not remember. I said to the best of my knowl-
edge; did I not? I didn't say I positively did not. I said to the best
of my knowledge I did not charge them both. Then you bring out
evidence and I explain the evidence.
Mr. Kennedy. Did the international know that you were also
charging the western conference?
Mr. Brewster. I don't know whether I have notified them to that
effect or not.
Mr. Kennedy. Who in the western conference knew that you were
charging the international?
Mr. Brewster. I discussed it with the policy committee.
Mr. Kennedy. That doesn't appear in the minutes either, Mr.
Brewster.
Mr. Brewster. There are a lot of things that don't appear. I
make discussions and they probably don't get them down, but I dis-
cuss those things. I don't think that that is probably a matter for a
motion or something like that. If it is, that is about the main thing
that we put down in our minutes.
Mr. Kennedy. But that is something that costs the union members
approximately $1,000 for the year 1954. Don't you think it deserves
some mention in j^our minutes ?
Mr. Brewster. Well, I want to say this: It cost them, but it was
spent and I didn't put it in my pocket.
Mr. Kennedy. You are the only one that knows that; isn't that
correct, Mr. Brewster?
Mr. Brewster. No. Everybody that knows me out in the western
part of the country can verify that.
The Chairman. It appears that we will have to go over until to-
morrow. Counsel says we cannot finish today. Since we have to go
over until tomorrow, we may be able to get through by noon.
Are there any other questions before we recess ?
The committee will stand in recess until 10 o'clock in the morning.
(Those present at time of recess: The chairman, and Senators Ives,
McNamara, Mimdt, and Goldwater.)
(Whereupon, at 4: 30 p. m.. the select committee recessed, to recon-
vene at 10 a. m., Wednesday, March 20, 1957.)
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
WEDNESDAY, MARCH 20, 1957
United States Senate,
Selected Committee on Improper Activities,
IN THE Labor or Management Field.
Washington, D. C.
The select committee met at 10 a. m., pursuant to Senate Resolution
74, agreed to January 30, 1957, in the caucus room. Senate Office Build-
ing, Senator John L. McClellan, chairman of the select committee,
presiding.
Present: Senators John L. McClellan, Democrat, Arkansas: Irving
M. Ives, Republican, New York; Sam J. Ervin, Jr., Democrat, North
Carolina ; Pat McNamara, Democrat, Michigan; Joseph R. McCarthy,
Republican, Wisconsin; Karl E. Mundt, Republican, South Dakota;
Barry Goldwater, Eepublican, Arizona.
Also present: Robert F. Kenned}', chief counsel to the select com-
mittee; Jerome Adlerman, assistant counsel; Carmine S. Bellino,
accounting consultant; Pierre Salinger, investigator; Alphonse F.
Calabrese, investigator; Ruth Young Watt, chief clerk.
The Chairman. The committee will be in order.
(Present at the convening of the hearing were Senators ^McClellan
and Ives.)
Tlie Chairman. All right, Mr. Brewster, 3^011 may resume the stand.
TESTIMONY OF FEANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
The Chairman. There will be no pictures while the witness is
testifying, gentlemen.
Mr. Griffin. JNIr. Chairman, on page 2511 of the transcript of yes-
terday's testimony, there is some testimony on that page which Mr.
BreAvster would like to correct and may he have that privilege.
The Chairman. The Chair will state that just before opening this
session, counsel for Mr. Brewster stated that jNIr. Brewster desired to
modify or qualify in some way a part of his testimony yesterday.
Mr. Brewster, the Chair was just preparing to give you that oppor-
tunity. So if you made some statement yesterday in your testimony
that, after reflection, you wish to modify or change, the Chair would
give you that privilege.
Mr. Brewster. Thank you, My. Chairman.
I made a positive statement that in my mind yesterday I knew
that I purchased the binoculars for Charles Tate. Wliether he has
received them or not, I am not too positive. I would like to correct
1189
1190 IMPROPER ACTIVITIES IN THE LABOR FIELD
that statement that I don't know whether he did or whether he did
not.
I £?ot thinking of it last night after I left here and I was positive
that I bought them for him and I certainly intended to give them
or send them to him. I am not too positive whether I did or whether
I did not.
I know that I have not been using or have not the binoculars myself.
The Chairman. I do not recall the testimony exactly. How long
ago were you supposed to have bought them ?
Mr. Brewster. This is August of 1955, Senator.
The Chairman. You do not know whether he ever received them
or not?
Mr. Brewster. That is true.
The Chairman. _ The only issue in it, I think, is a question of whether
it was a personal gift or a gift from the union.
Mr, Brewster. It was to be a gift from the union and it wasn't a
personal gift.
The Chairman. It was not a personal gift, but a gift from the
union ?
Mr. Brewster. Yes, sir.
The Chairman. And you are positive that you bought them ?
Mr. Brewster. I bought them with that intention of giving them ;
yes, sir.
The Chairman. You bought them with the intention of giving
them to him, but you do not recall now whether you gave them to
him or whether he received them, and you have no knowledge about it.
Mr. Brewster. That's right. I am not positive on that particular
point.
The Chairman. Do you know where they are ?
Mr. Brewster. No; I don't.
The Chairman. Mr. Kennedy is perhaps more familiar with the
matter and I will ask him to take over here.
Mr, Kennedy. We talked to Mr. Tate last evening, and he said
that he had received the binoculars and that he received the binoculars
back in the middle of 1955 as you testified. He said that it was his
understanding that the binoculars were a personal gift from you,
that there was never any discussion of the fact that there was a gift
from the Western Conference of Teamsters.
Mr, Brewster, Well, I am pretty sure that I did say that because
he was very close to the western conference and he had done some
favors for them and it certainly wasn't my personal idea to take the
credit for it.
The Chairman. All right.
Mr. Kennedy. I understand that the western conference had made
a donation to his campaign, is that right ?
Mr. Brewster. Yes, sir, they did.
Mr, Kennedy. Of $2,000?
Mr, Brewster. That's true.
Mr. Kennedy. Was he elected or defeated ?
]\Ir. Brewster. He was elected but they didn't appropriate the
money for him so he was still out of a job.
Mr. Kennedy. In that connection, the teamsters also donated
moneys to Governor Knight's campaign down in California, did they
not? '
IMPROPER ACTIVITIES IN THE LABOR FIELD 1191
Mr. Brewster. Yes, sir ; we did.
Mr. IvENNEDT. Did you have any discussions with Governor ICnight
prior to the time that the money was donated ?
Mr. Brewster. I don't know what you mean by "discussions."
Mr. Kennedy. Was there any discussion about the State board of
labor commissions with Governor Knight ?
Mr. Brewster. I had no discussions whatsoever with Governor
Knight about any appointments.
Mr. IvENNEDY. You did not I
Mr. Brewster. No.
Mr. Kennedy. Do you know of anybody in the teamsters who had
such a discussion with him ?
Mr. Brewster. I wouldn't know that, that would be the teamsters
themselves down there that would have to answer that.
Mr. Kennedy. Do you know Mr. Harold Lopez ?
Mr. Brewster. I know he is on there.
Mr. Kennedy. And he is president of local 85 of the teamsters ?
Mr. Brewster. That's true.
Mr. Kennedy. And he is now a commissioner?
Mr. Brewster. He is not president ; I think he is business manager.
I think that is the correct title.
Mr. Kennedy. He is now commissioner of the State board of labor
commissions.
Mr. Brewster. I know that he is a member of that along with Mr.
Magna and somebody else.
Mr. Kennedy. And Governor Knight appointed him to that posi-
tion ?
Mr. Brewster. Yes, he did.
Mr. Kennedy. "Was that also after Mr. Tate was defeated? Mr.
Tate is from Seattle ; is that right ?
Mr. Brewster. Originally he was from San Francisco, but he had
done business in Seattle for possibly 20 years, I would say, roughly.
Mr. Ivennedy. Did j-ou have any discussions with Governor Knight
about appointing ]Mr. Tate to any position?
Mr. Brewster. I believe I wrote a letter, I am not sure, or I might
have talked to him personally about the qualilications of Mr. Tate.
Mr. Kennedy. Now, Mr. Tate was brought down from Seattle and
appointed port director of San Francisco by Governor Knight?
Mr. Brewster. He went back to his home in San Francisco, and he
was appointed there.
Mr. Kennedy. How long had he been living in Seattle prior to that
time?
Mr. Brewster. He was born and raised in San Francisco, and he
lived there until about the last 20 years and then he went down. I
think it was 15 or 20 years ; I am not positive.
Mr. Kennedy. Up in Seattle ?
Mr. Brewster, Yes, sir,
Mr, Kennedy, Prior to the time he was appointed port director of
San Francisco ?
Mr, Brewster. That's true, but his intentions were to go to San
Francisco anyway.
Mr. Kennedy. You raised his name and so I thought we might bring
in these other facts.
1192 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Brewster. And incidentally, Counsel, I think he has done a
wonderful job, and I am glad I recommended him to some degree.
Mr. Kennedy. Mr. Chairman, here is the check of $2,000 to Mr.
Charles Tate.
The Chairmax. It is signed by ^Ir. Brewster, and we will present
it to him.
(The document was handed to the witness.)
The Chairman. Do you recognize the check, Mr. Brewster?
Mv. Brewster. The check is for Charles Tate, in the sum of $2,000
made out on October 12, 1954, signed by myself and John J. Sweeney.
The Chairman. The Chair is not quite certain. What was that
check for ?
Mr. Brewster. Campaign expenses.
The Chairman. Campaign expenses?
Mr. Brewster. Yes, sir.
The Chairman. All right, that may be made exhibit Xo. 86.
(The document referred to was marked "'Exhibit Xo. 86'' for refer-
ence and will be found in the appendix on p. 1433.)
(At this point in the proceedings Senator McNamara entered the
hearing room.)
]V[r. Kennedy. Now, Mr. Brewster, also, when you testified yester-
day you were discussing the welfaie and pension funds, I believe.
Mr. Brewster. Yes, sir.
Mr. Kennedy. Whom did you say was the insurance company that
handles this welfare and pension funds?
Mr. Brewster. There are two insurance companies, the Pacific
Mutual and the Occidental.
Mr. Kennedy. "WTiat is the amount of the fund in those insurance
companies?
Mr. Brewster. What is the amount of the fund ?
Mr. Kennedy. Yes; how much money is involved in your pension
and welfare fund ?
Mr. Brewster. Well, I haven't those figures.
Mr. Ivennedy. Approximately, do you know ?
Mr. Brewster. I would just be really guessing if you asked me that,
and I don't know. It increases from time to time, but the health and
welfare usually keeps along just about even, and in fact from the
inception of this we set up a schedule of benefits.
With the increase in hospital rooms, wonder drugs, and so forth,
it has been necessary to increase the amount of money that we first
decided on, which was 5 cents. We have some funds that are just
going along about even and some of them have accumulated probably
two to three hundred thousand dollars.
Mr. Griffin. Mr. Chairman, this is not an objection, but I think
Mr. Kennedy's question, if I understood it, he said, "welfare and
pensions." Now, I think that he meant "health and welfare.'"
]Mr. Kennedy. That is correct.
Mr. Griffin. ^Yliat he has been talking- about yesterday was pen-
sions, and this is just to get the record straight.
The Chairman. Thank you very much. Let the Chair get straight
on this. There have been so many funds mentioned, special funds,
and unemployment relief funds and health and Avelfare funds and
pension. Are the health and welfare funds separate funds?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1193
Mr. Brewster, They are.
The Chairiman. Are they kept hi separate accounts ?
Mr. Brewster. They are.
The Chairmax. How is the health and welfare fund supported?
What is its source of revenue?
Mr. Brewster. Bj^ an amount of money that is received from the
employers. It is embodied in the contract.
The CiiAiRMAX. In all of the health and welfare funds, it all comes
from the employer ?
Mr. Brewster. Yes, sir.
The Chairman. Xone from the union member ?
Mr. Brewster. None from the union members.
(At this point in the proceedings Senator Mundt entered the hear-
ing room.)
The C'hairmax. The amount then, is determined by each contract
you may make with an employer ?
Mr. Brewster. That is true.
The Chairman. Do those amounts vary ?
Mr. Brewster. The amounts of the health and welfare?
The Chairman. The amount charged to the employer. In other
words, do the employers all pay on the same basis or is that a matter
of negotiated amount in each instance in the particular contract be-
tween the union and tliat particular employer ?
Mr. Brewster. Mr. Chairman, they vary in different localities.
There are different amounts.
The Chairman. That is what I mean. In some localities, perhaps,
the employer will pay an amount of so much per employee and in
another locality maybe another employer with whom you have a con-
tract will pay a different amount per employee.
Mr. Brewster. That is true.
The Chairman. That is correct, is it?
Mr. Brewster. Yes, sir.
The Chairman. I am trying to get the structure of it.
Mr. Brewster. That is correct.
The Chairman. So all of those funds, whatever they are, are re-
ceived from the employer ?
Mr. Brewster. That's correct.
The Chairman. As a part of the benefits and as a part of the fringe
benefits, we will call them, that are in addition to the wages that the
employer is required to pay.
Mr. Brewster. Yes, sir.
Tlie Chairman. Now, let us take the pension fund.
Senator Mundt. Before you leave that point
The Chairman. I am just trying to get this record clear regarding
these funds.
Senator Mundt. Within the communities, do the rates and the con-
tracts vary among the various employers, or are all employers bound
by the same type of contract within a certain community or area ?
Mr. Brewster. Senator Mundt, it all depends on the industry itself.
If they have a small pension, I will give you a concrete example.
The taxi industry probably is the most hazardous industry as far
as liealth and welfare is concerned. Some of the men are physically
in a position where they need more attention and tlieir death rate is
1194 IMPROPER ACTIVITIES IN THE LABOR FIELD
higher and their membership is low, and that has an experience that
is considerably more.
In some areas we embody the taxi drivers organization into what
we term a general fund that is agreed by the employers, that it might
be miscellaneous of over-the-road drivers, taxi driver, and a portion
of milk in different areas and so forth.
By having a large fund we are able to keep the amount that is paid
into it down. But it isn't necessarily so. Like Los Angeles, the rates
seem to be higher in Los Angeles than they do in the northwest. The
hospital rates are higher and the doctors' rates seem to be higher.
Senator Mundt. I am trying to get a clarification of my under-
standing of what you told the chairman. I was trying to determine
whether or not your contracts within Seattle for different employers
on pensions were the same or whether they tended to take on simi-
larity within industries rather than by communities.
That is, if you can clarify that.
Mr. Brewster. I would say that in Washington and Oregon our
amounts are, I believe, the same in every instance because we do it on
a base where we bring it in collectively.
In southern California and some in northern California, they vary.
Senator Mundt. I understand that in Washington and Oregon their
rates are the same for all employers, regardless of what industry they
are in.
Mr. Brewster. I believe that is correct. I think the last one nego-
tiated was $10.40 a month.
Senator Mundt. That applies to all industry whether it happens
to be a bakery or department store or taxicab company ?
Mr. Brewster. That is true.
Senator Mundt. Or whatever it is.
Mr. Brewster. That is true.
Senator Mundt. It is not done by industries, it is done by geo-
graphical areas?
Mr. Brewster. That is what we have tried to do and we have been
more successful in Washington and Oregon than we have in the south-
ern part of the country.
Senator Mundt. I am just asking that out of simple curiosity. It
would seem to me that some industries might be able to pay higher
pensions than other industries and I do not know. Some of them are
profitable both for the employer and maybe for employee and your
phase of business in certain industries might be more important than
incidental hauling in another.
That is why I wondered if it might vary by industries.
Mr. Brewster. We tried to work that theory. Senator Mundt, on
wage scales, but it doesn't work.
Senator Mundt. It is mostly geography, then ?
Mr. Brewster. When an employer is in a lucrative industry, we
can't go and say, "You're making a lot of money. We want a lot more
for your truck drivers."
Senator Mundt. You do not follow the "ability to pay" theory that
is supposed to apply in taxes ?
Mr. Brewster. No, sir.
The Chairman. Did I understand you to say the amount collected
from employers in the northwest area for health and welfare is $10.40
per month ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1195
Mr. Brewster. I believe that is the amount.
The Chairman. Now, this fund is a very large fund, on the basis
of $10.40 per month for each employee. Tell me who administers that
fund and who is the trustee of it after you receive it.
Mr. Brewster. The trustee is equally represented by members of
the employer and the employees.
The Chairmax. In other words, there is a board or a group of
trustees set up for the fund?
Mr. Brewster. That is true.
The Chairman. With equal representation of the employer who
pays it, and of the union that collects it ?
Mr. Brewster. That is true.
The Chairman. Now, let us go to the pension fund. How about
the pension fund ? What is the source of it ?
Mr. Brewster. It is developed by the amount of 10 cents per mem-
ber.
The Chairman. Ten cents per what?
Mr. Brewster. Per member, per month.
The Chairman. IVlio pays that?
Mr. Brewster. The employer pays that.
The Chairman. And the employer pays that 10 cents per month?
Mr. Brewster. Yes. sir, and now there is one exception. The truck-
ing industry which embodies the 11 Western States pays 5 cents until
their contract has expired and then that will go up to iO cents. That
was one of the first ones that was negotiated.
The Chairman. So, in other words, all of the pension funds, like
the welfare fund, comes from the employer ?
^Ir. Brewster. Can I explain that a little more in detail ?
The Chairman. You may, but I am trying to get the facts.
Mr. Brewster. It comes, everything we get comes from the em-
ployer.
The Chairman. But I mean that is again another fringe benefit ?
Mr. Brewster. That is true.
The Chairman. In contrast to direct wages ?
Mr. Brewsi"er. That is right.
The Chairman. So now, what other fund do you have? May I
ask you first, is this administered by the same way, the pension fund,
as the liealth and welfare fund, by a joint board ?
Mr. Brewster. By a joint board, yes, with equal representation.
The Chairman. They are both administered the same way?
Mr. Brewster. That is true.
The Chairman. Now, what other funds or accounts do you have
where all of the money is paid by employers ?
Mr. Brewster. That's all.
The Chairman. Those two are the only two where all of the money
is paid by employers?
Mr. Brewster. Yes, sir.
The Chatoman. Now, what other funds do you have that may come
from the membership of the union exclusively ?
Mr. Brewster. We have a pension for the full-time employees of
the union.
The Chapman. That is where they are employed by the union?
Mr. Brewster. Yes, sir.
1196 IMPROPER ACTIVITIES IX THE LABOR FIELD
The CHArRMAN. You have a pension fund for those ?
Mr. Brewster. Yes, sir.
The Chairman. Like the administrative and clerical help in oper-
ating the union headquarters and the union locals and so forth?
Mr. BREWS'rER. Not the clerical help, just the secretaries, the paid
personnel that are out in the field for the local unions themselves.
The Chairman. Where do you get the source of revenue to support
that special pension fund ?
Mr. Brewster. That comes from a payment from the local unions
into tliis fund.
The Chairman. In other words, out of the dues collected by local
unions you assess local unions a certain amount to go into this pension
fund for the administrative or professional staff of those who ad-
minister the union, is that correct ?
Mr. Brewster. That's correct.
The Chairman. In other words, the members, the working men,
have to contribute to a fund for a pension for their administrative
officials and so forth?
Mr. Brewster. Like the employers do for the employees, yes.
The Chairman. Do those who participate in this fund such as you
and your assistant, make any contribution to it ?
Mr. Brewster. Yes, sir.
The CiiAiR3tAN. So it comes from the locals and from contributions
that you make ?
Mr. Brewster. That is true.
The Chairman. What is the ratio there ?
Mr. Brewster. It is based upon your age and so forth. It works
out about 60-40.
The Chairman. By what formula do you assess locals to contribute
to this fund ?
Mr. Brewster. Based upon their membership.
The Chairman. The number of members then, determines the
amount of their contributions?
Mr. Brewster. That is true.
The Chairman. All right. Are there any other funds now ?
Mr. Brewster. No, sir ; not to my knowledge.
The Chairman. There are no other funds at all ?
Mr. Brewster. I can't think of any.
The Chairman. We have covered health and welfare that comes
from the employer and the pension fund that comes from the em-
ployer, and then we have covered pension funds for certain adminis-
trative officers and so forth of the union who work for the union.
Mr. Brewster. There are about 1.000 of them.
The Chairman. 1,000 of those ?
Mr. Brewster. Koughly speaking.
The Chairman. Now, are there any other special funds (
Mr. Brewster. Not that I know of.
The Chairman. No others ?
Mr. Brewster. No.
The Chairman. What about special funds for political purposes
or special accounts such as we discussed yesterday. How does that
originate?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1197
Mr. Brewster. In the Western Conference of Teamsters, we liaveirt
an}- special fund in the Western Conference of Teamsters at tlie
present time.
The Ctiatrmax. How did these si>ecial accounts orioinate tliat, we
discussed yesterday ?
Mr. Brewster. They originated in executiA-e boai'ds in the local
unions.
The CiiAiRarAN. The executive board set that up ?
Mr. Brewster. Yes, sir.
The CiTAiRMAx. And suppoi-ted it by checks out of the reoular
treasury?
Mr. Brewster. That's true.
The Chairman. All rig'ht. Now, we had an unemployment relief
fimd yesterday that we discussed, too. Is that a regular fund?
Mr. Brewster. That has been discontinued.
The Chairman. Sir?
Mr. Brewster. That has been discontinued in 1953, the latter part.
The Chairman. It was discontinued in 1953?
Mr. Brewster. Yes, sir.
The Chairman. When was it initiated ?
Mr. Brewster. I think about 1943 to 1944, in there somewhere, and
I wouldn't exactly know.
The Chair:man. Xow, how was that fund supported?
Mr. Brewster. It was supported by the executive board voting to
put it into effect.
The Chairman. In other words, it is supported just like the special
fund that we discussed 3^esterday, by taking money out of the regular
treasury ?
Mr. Brewster. That's true.
The Chairman. And putting it into that?
Mr. Brewster. Yes, sir.
The Chairman. Now, I have one other question along that line,
While I am at it. Did you ever have, or do you know now, and I think
I asked j^ou this j^esterclay, but we have had time to think about it — did
you ever have a special account for either the special account about
which you testified yesterday, or for the unemployment relief fund,
about which you testified yesterday? Did you ever have a special
account in any bank anywhere for either of those funds?
Mr. Brewster. I believe I testified yesterday that I did not know
and I have not had a chance to check.
The Chairman. You see, Mr. Brewster, if you had those funds
over a period of 10 years, in the high position you occupy, it does seem,
that you would know about it.
If you had a bank account, you are secretaiy and treasurer and
you are president now, and having these positions, it would seem
that you would know about it. If you say you do not, that is it.
Mr. Brewster. I say I don't at the present time.
The Chairman. Senator Ives had a question.
Senator Ives. I have a few questions to ask Mr. Brewster. I am
rather interested in your pension and welfare funds, Mr. Brewster,
due to the fact that in the last two Congresses we had a subcommittee
of the Committee on Labor and Public Welfare here in the Senate
investififatinof in that field.
1198 IMPROPER ACTIVITIES IN THE LABOR FIELD
I would like to ask you a few questions in connection with your own
setup. How is that agreement reached between the employers and the
union ? Is it by collective bargaining ?
Mr. Brewster. Yes, sir.
Senator Ives. It is a part of the contract, I take it.
Mr. Breavster. That is true. Usually, Senator Ives, it has paid
the employers many, many times. I don't think that it could be termed
that it was absolutely — it is negotiated in one sense of the way, but
it isn't negotiated exactly separately. We negotiate, we will say, a
package of 15 cents and then we have the privilege of taking that,
which the membership votes on, 10 cents and putting it into a pension
fund.
We have negotiated moneys and we divert that part and make it a
part of the agreement.
Senator Ives. Wait a minute on this diversion. You negotiate 15
cents and you take just 10 cents, and is that a correct statement or is
that hypothetical ?
Mr. Brewster. Well, that is usually the way that we negotiate.
Senator Ives. What happens to the nickel ?
Mr. Brewster. That goes right on the wage scale itself.
Senator Ives. On the wage scale itself ?
Mr. Brewster. Yes, sir.
Senator Ives. I see.
Mr. Brewster. A lot of times some employers, as they have in the
past, would probably rather pay the money than to be bothered
with the pension on health and welfare when we started. We found
that several employers had paid that and they still were up against
negotiations as far as the health and welfare was concerned and the
pensions.
Senator Ives. You say that this fund, or these funds, the welfare
and the pension funds, are administered by a joint board, is that it?
Mr. Brewster. Yes, sir.
Senator I\^&. Made up of members of the union and the employers ?
Mr. Brewster. Usually the officials, the secretary of the local union
of the contract and possibly the executive board of the employers
association.
Senator Ives. That is what I wanted to ask some questions about.
Are you a member of the union part of that board, yourself, or have
you ever been?
Mr. Brewster. Yes, sir, I have been.
Senator Ives. Are you acquainted with the functioning of the
board ?
Mr. Brewster. Yes, sir.
Senator Ives. Are you acquainted with the investments in which
the moneys so raised are placed ?
Mr. Brewster. Yes, sir.
Senator Ives. Wliat are they?
Mr. Brewster. Any surplus money must be deposited in national
banks.
Senator Ives. You do not mean to tell me that you have a pension
and welfare fund, and that is another question I was going to ask
Mr. Brewster. They are two different funds.
Senator Ives. I am talking about that, the pension and welfare
funds. You do not mean to tell me that you have got them so that
IMPROPER ACTIVITIES IN THE LABOR FIELD 1199
they are just balancing, so that you are taking out as much as you are
putting in currently, all of the time.
(At this point in the proceedings, Senator McNamara entered the
room. )
Senator Ives. You are not building up any reserves, is that correct?
Mr. Brewster. It is correct in some cases and incorrect in others.
Some plans and pensions — I don't think we should get them confused,
if we just talk about health and welfare so that I won't get confused.
Senator Ives. Well, stick to that and we will get to pensions after-
ward.
Mr. Brewster. Health and welfare — there are some funds that are
building up and that is invested and put into banks and it is only
invested in that manner.
Senator Ives. Now wait a minute. By "invested and put in banks"
do you mean it is a bank deposit f
Mr. Brewster. No, 1 mean drawing interest in the banks.
Senator Ives. That is a bank deposit, deposited in the bank.
Mr. Brewster. I would say a savings account. Maybe that would
be proper.
Senator I\tes. It is a bank deposit.
Mr. Brewster. Yes, sir.
Senator Ives. Is it not placed in Government bonds, or anything
of that kind, or is there not a sufficient amount of money?
Mr. Brewster. Xo, sir, it is not.
Senator Ives. How much does it amount to? I am talking about
your health and welfare funds, or fund.
Mr. Brewster. They are funds, and there are many fmids.
Senator Ives. How much do they amount to in the aggregate there
in the Western Conference?
Mr. Brewster. Every fund that is set up is set up differently and
some funds are healthy and some funds are sour.
Senator I\t:s. Well, do you not have any idea in aggregate what
they amount to, the reserves ?
Mr. Brewster. That would certainly be a rough guess. I know one
fund where there is in excess of $300,000.
Senator Ives. That is all in cash in the bank?
Mr. Brewster. It is all in the savings account in the bank, with the
exception of just, I don't know, probably $10,000 or $12,000.
Senator Ives. I thought from what had been said about the team-
sters that your funds were far greater than that, in that particular
field.
Mr. Brewster. Wait, that is just one union.
Senator I\i:s. I understand, but I am trying to find out how much
the teamsters have in all of these funds and he does not seem to know.
Mr. Brewster. No, I don't know because they are done in a local
level, the health and welfare.
Senator Ives. Now, to get down to the next question, are you re-
porting this to the Secretary of Labor, or the Labor Department in
your reports you are making on the financial operations of the union?
They ought to have a record of it. Somewhere there ought to be a
record.
Mr. Brewster. I believe there is a separate report made on all
health and welfare and pension funds.
81)330— 57— pt. 4 7
1200 IMPROPER ACTIVITIES IX THE LABOR FIELD
Senator Ives. Wlien they are jointly administered?
Mr. Brewster. I think so.
Senator Ives. Now, I do not know about that, whether you would
have to do that. None of that comes from the union, that is what I
am trying to find out.
Mr. Brewster. There is no profit in it. It is kept separate, and
there is no profit in that, in any manner that goes into the union at all.
Senator Ives. Now, let us turn to this angle : Do you think there
should be a report made on those funds somewhere where the Govern-
ment is concerned?
Mr. Brewster. Certainly, I do.
Senator I\t:s. Well, all right. Then, I will not go into your pen-
sion business because I take it that is along the same lines as this, only
much less proportionately.
Are you in favor of legislation that would require that ?
Mr. Brewster. I am in favor of legislation that will protect that
money to the fuUest extent.
Senator Ives. All right. We have two bills then, either one of
which will probably do that right now.
Mr. Brewster. It is certainly all right with me.
Senator Ives. We are in a position where we can go ahead with
that legislation this year, as soon as we get around to having some
hearings on them. You would be in favor of legislation of that type ?
Mr. Brewster. I certainly would not oppose it.
Senator Ives. I think all labor organization leaders are in favor of
it, as far as I know. I have not found anybody that is not in favor
of it.
Mr. Brewster. I am.
Senator Ives. Well, I am very grateful to you for giving me this
information about the way in which you are handling these matters.
I still do not know how you are doing it, and I still do not know what
part of this the employers are participating in.
You say they are participating with you and yet labor people them-
selves take board action. Is it actually true? Are most employers
actually participating or are they not ?
Mr. Brewster. On the board, you mean ?
Senator 1\^es. In the investment of this money.
Mr. Brewster. Absolutely.
Senator Ives. Some of it is put in bank deposits or is it not ?
Mr. Brewster. Absolutely, they are.
Senator Ives. Did you find any reluctance on the part of the em-
ployers to do that ?
Mr. Brewster. Not a bit.
Senator Ives. That is one of the things we have run into over the
years.
Mr. Brewster. We don't find it out there at all.
Senator I^^s. You never have been approached on having some kind
of an insurance setup created ?
Mr. Brewster. No, sir.
Senator Ives. You have not gone into that angle of it at all?
Mr. Brewsti:r. I have not.
Senator I\'es. All of this money is in bank deposits?
Mr. Brewster. Tliat's riaht.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1201
Senator Ives. Thank you very much.
The Chairman. I have just one question that I am not quite clear
about. Where do the insurance companies come into phiy in this
program? You liave been talking about some insurance companies
here.
Mr. Brewster. Insurance companies bid on this account or these
accounts.
The Chairmax. They bid on them, how ?
]\rr. Brewster. Bid on them, on how much they will do them for.
In other words, when we have, we'll say— — ■
The Chairman. You mean administer them?
Mr. Brewster. Oh, no ; the handling of the money themselves.
The Chairman. That is kind of an administration, handling of the
money.
Mr. Brewster. Well, receiving the money. We have all insured
plans, Mr. Chairman. We haven't any administered plans that the
employers and ourselves administer. That is all of the plans that we
have and I believe wholeheartedly that all plans should be adminis-
tered through insurance companies.
The Chairman. I am not challenging it. I am trying to under-
stand it.
Ml-. Brewster. We have not any plans that we administer to the
point- that they are administered by themselves. Even with employer
and employee representatives, all of our plans are insured plans. Our
plans work through an insurance company.
The Chairman. In other words, it is like reinsurance and you get
the money and you are responsible for it ?
Mr. Brewster. It is more positive insurance.
The Chairman. We will come back to that later.
Senator McNamara. I presume when you are talking about these
funds in connection with insurance companies, now, you are talking
only about the pension fund ; is that right ?
Mr. Brewster. No, I was talking about first health and welfare.
Senator McNamara. Health and welfare is also administered and
do insurance companies enter into health and welfare funds?
Mr. Brewster. Oh, yes.
Senator McNamara. Wliat insurance company? Is it Prudential,
for instance?
Mr. Brewster. No, the Prudential is not in it at the present time. It
is the Occidental and Pacific Mutual. The Occidental has the largest
amount of insurance, and they were the first ones to get into the field,
but we put out bids when we a get a new account and so forth.
Senator McNa3Iara. But on your pension fund, you mentioned that
in connection with Prudential or something like that.
Mr. Brewster. That is Prudential has the entire amount of that
because it is about the only way we can do it.
Senator McNamara. You were discussing at some length, yester-
day, your connection with these various funds, and you said among the
4 or 5 locals that were in trusteeship, or in that area, you were an
officer of the fund by virtue of your trustee position.
Mr. Brewster. That's true.
Senator McNamara. Now, is 174 one of the locals under trusteeship ?
Mr. Brewster. It is not.
1202 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McNamara. It is not?
Mr. Brewster. No ; it never has been.
Senator McNamara. Then, did you represent 174 or do you now
represent 174 as one of the administrators ?
Mr. Brewster. I am one of the trustees for 174.
Senator McNamara. Were you elected to that job by the member-
ship of 174?
Mr. Brewster. Yes, sir.
Senator McNamara. During 1951 you had about 6,500 members in
local 174. I suppose you have considerable more at this time ?
Mr. Brewster. No ; we took a specialized part of our organization
and chartered a separate charter for it.
Senator McNamara. You divided it up into two locals?
Mr. Brewster. We took a group of which are line drivers, special-
ized line drivers, and they have a membership of about 1,500. I
think now that the membership of 174 might go between 5,500 and
6,000.
Senator McNamara. You indicated that this was sort of a miscella-
neous group.
Mr. Brewster. Of the road driver, you mean ?
vSenator McNamara. The membership of 174.
Mr. Brewster. That's true. It is everybody that is not in a special-
ized group, such as mill, laundry, bakery, and so on.
Senator McNamar.\, I was particularly concerned with whether or
not this was a trusteeship local, and I find now that it is not.
Ml'. Brewster. It never has been.
Senator McNamara. All right.
Senator Mundt. Before counsel begins his questioning, I have a
question. You can relax for a minute, and this does not affect you,
Mr. Brewster.
Earlier in these hearings. Senator McNamara and I were publicly
assigned to conduct an investigation, and since this was initiated
publicly, I think that it should be concluded publicly and be made a
part of the record.
It involves the employment suitability of one Robert William
Greene. Senator McNamara and I nuule a preliminary report, and
after our investigation we recommended he be continued on the com-
mittee staff, but asked the FBI to conduct a Federal investigation.
They have reported back to the connnittee now, and Senator Mc-
Namara and I are pleased to report that Mr. Hoover's letter does not
]u-ovide any adverse information on Robert William Greene.
So we reconnnend his continuation with the committee and that our
little subcommittee be discharged.
The CiiAiRMAX. Gentlemen, you have heard the report. I believe
we have a quorum. There are four of us here.
Is there any objection to the report being received and the sub-
connnittee discharged ?
As the Chair hears none, it is so ordered.
Proceed.
(Present at this point in the proceedings were Senators McClellan,
Ives, McNamara, and Mundt.)
Mr. Kexxedy. Mr. Brewster, just in connection with Senator Mc-
Nanuira's questions, how many of the unions in the Western Confer-
ence of Teamsters are in trusteeship?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1203
Mr. Brewster. I think there are about 40 to 44, somewhere in there.
They are coming out as fast as we can. The hist count that I made, I
think was 44, or the last check.
Mr. Kennedy. It is about 20 percent of your unions in the 11
Western States that are in trusteeship ?
Mr. Brewster. Roughly speaking, that would be it. There are
246 locals.
Senator MuND^r. How do they get out? Do they get out on their
own initiative or do you have to let them out ?
Mr. Brewster. It is a combination of both. I would like to say this
in regard to trusteeships : I am very much opposed to trusteeshi])s for
any long period of time. Wlien a new local union is chartered, I
believe that it should be for a period of 2 years, because our constitu-
tion says that a man should be in the organization for 2 years and
give the person an opportunity to acquaint himself with the organi-
zation himself.
To give you a concrete example of what just happened with local
174, that was chartered or taken out of 174 and got a separate charter,
for 2 years that was under trusteeship. At the end of 2 years that
came out of trusteeship immediately, and there was an elex'tion and
the same officers that conducted the business for 174 for 2 years were
reelected.
I think with one exception — that was a member of the trustees.
Now, some of these local unions are financially unsound and they are
in areas where they have to be subsidized. I think it is necessary
that in that vicinity it is under trusteeship to the head of that area.
I bring this up every 6 months, and I ask for a report from the
international, and I go over at our policy meeting and want to know
the progress they have made, so that in their opinion they feel they
are substantially strong enough and built up a good enough member-
ship to go on their own.
Senator Mundt. Does a local which finds itself in trusteeship have
to do anything beyond developing a record of solvency in order to
get out of trusteeship ?
Mr. Brewster. Solvency and possibly good leadership, yes; and
things of that kind. I have had instances where I could refer to one
local union in Bellingham that had three trustees, and we had to help
finance the local continuously.
I finally found one man that went up there, and he was there and
he did a wonderful job, and within 2 years it was taken out of trustee-
ship and he has been elected ever since.
This is several years back, and that is one of the best small local
unions in the State of Washington. It was the leader himself that
did it.
Senator Mundt. The one union under trusteeship with which this
committee has some familiarity is this one involved with these hear-
ings in Portland, in connection with the pinball operations.
As I remember, Mr. Hildreth was the secretary of that union in
trusteeship and reported that they had not had an election for 5 years.
I am wondering how you develop good leadei^hip, or leadership
of any kind that you can check as to its value if they do not have any
elections under a trusteeship.
(At this point in the proceedings, Senator Ervin entered the
hearing room.)
1204 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Brewster. I don't think that you really do, Senator. That is
one of the things that I am opposed to trusteeships for, because I
don't believe that it inspires the officer himself to get out and do a
good job.
That is one of my main reasons for, as soon as it is possible, to get
them out of trusteeship, to do so. I haven't gone into that particular
local union, but I will say this, that Oregon has done a better job, on
an average, of taking local unions out of trusteeship than any other
State in the 11 Western States.
I think that they have something like 4 at the present time, and I
believe they had 8 about 2 years ago. They cut theirs in two.
Senator Mundt. We were having a discussion yesterday and wound
up with a question on which you sought additional time to make an
answer, and I am not going to press you for your answer this morn-
ing. Do you remember what the question was, about the franchise
of the union member and his right to exercise his greatest of all
American heritages, the right of self-determination in polling places?
Now, beyond that, it seems to me that a union member in a local
which is under trusteeship not only gets himself caught in the trap
that I was deploring yesterday, where he was compelled to pay a
union tax to support a candidate that he might oppose, but that
actually the union member in a trusteeship just does not even have
any control over his own union; does he? He is just paying dues,
and while he is under a trusteeship he has no choice of his own local
officers or anything else, as I understand it.
Mr. Brewster. As a whole, that isn't exactly true. I recommend
that other than the person that is the head of it, and everything has
to have a head, the head of that organization be appointed for a rea-
sonable period of time and all of the other officers elected.
Although, under the charter the trustee has the right to appoint all
officers, I am not in favor of it.
Senator Mundt. I can understand in a new union you have to have
a certain period in which it can prove itself, but after it has been estab-
lished then it would seem to me that the union members under the
trustee should certainly have a right to elect their local leaders and
let them demonstrate their capacity to be good leaders, and let the
leaders demonstrate their capacity to function,
Mr. Brewster. I agree with you wholeheartedly.
Senator Mundt. But your charter, you say, does not provide for
that. Personally you favor it but the charter does not ]:)rovide it.
Mr. Brewster. It does not provide it.
Senator Muxdt. Would that not be a good constitutional amend-
ment to include it in your constitutional revisions that you are going
to have here shortly ?
Mr. Brewster. I believe in some instances that it would be neces-
sary to possibly appoint a full board. I have an example that several
years ago I was called back into Seattle, that a rump grou]:» in the taxi
industry in Seattle had called a strike, and there were only about .']0
or 40 of them, out of a membership of about 500, and they forced the
other members to take their cabs in and tie it up.
I think that needed a cleaning house all together.
Senator Mundt. I presume, in doing that, this rump group had vio-
lated something or other, either your constitution or your bylaws, or
your charter, or something ? '<j^n yn?. : :
IMPROPER ACTIVITIES IN THE LABOR FIELD 1205
Mr. Brewster. That's true.
Senator Mundt. So that they were subject to disciplinary action.
Mr. Brewster. And some of the members of the board were in-
volved.
Mr. Kennedy. How long has that taxicab union been in trustee-
ship?
Mr. Brewster. I believe 1944.
Mr. Kennedy. So that is about 13 years?
Mr. Brewster. Thirteen years.
Mr. Kennedy. And you are a trustee ?
Mr. Brewster. I am a trustee and I would like to say that I think
2 or 3 years ago it came up to a vote and the membership voted to keep
it in trusteeship.
Mr. Kennedy. What percentage of members voted at that meeting?
Mr. Brewster. I wouldn't know that but they hold meetings so that
everyone can attend and they hold two meeting's. They hold a morn-
ing meeting and a night meeting.
Mr. Kennedy. How many members come to the meeting ?
Mr. Brewster. I am not sure.
]Mr. Kennedy. Are you not a trustee ?
Mr. Brewster. Yes, but I don't check how many members come.
]Mr. Kennedy. Do yon not attend the meetings ?
Mr. Brewster. I do when I am in town and the vice president takes
over when I am not there.
Mr. Kennedy. When was the last meeting you attended of the taxi-
cab drivers?
Mr. Brewsi'er. It has been more than a year.
Mr. Kennedy. And j^ou are the trustee of the union ?
Mr. Brewster. I am the trustee.
Mr. Kennedy. And you cannot tell us how many members attend
the meetings?
Mr. Brewster. No, I cannot tell you how many attend the meet-
ings, but I think they are along the average of any other local union
and I think the percentage is small. I don't think it is near 50 per-
cent, but those are the people.
Mr. Kennedy. How many members do you have in the taxicab
union ?
Mr. Brewster. It is close to 600, 1 believe.
Mr. Kennedy. And you have no idea how many attend the
meeting ?
Mr. Brewster. No, I don't any more than I have any idea of prob-
ably any other local.
Mr. Kennedy. What percentage of the membership in the Western
Conference of Teamsters, what percentage of the membership is mider
trusteeship ?
Mr. Brewster. I think j-ou just quoted it.
Mr. Kenndy. I asked you what percentage of the locals were under
trusteeship and it was about 20 percent.
Mr. Brewster. The membership, that would be a rough one to break
down. They are more or less small locals.
Mr. Kennedy. Do you have any idea?
Mr. Brewster. I don't think that it would be over 8 percent.
Mr. E^ennedy. About 8 percent ?
1206 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. I think that is right.
Mr. Kennedy. Of the membership ?
Mr. Brewster. I am making a rough guess.
Mr. Kennedy, Would you get us the figure ? Would you get those
figures for us?
Mr. Brewster. I think that I can get them, surely.
Mr. Kennedy. Would you provide them for the committee?
Mr, Brewster. Yes, sir.
The Chairman. You can submit that by letter when you get home,
Mr. Brewster, if you will, please, sir.
Mr. Brewster. I will try and contact our office here and have them
send in a letter to that enect because that can be checked probably
better in the local office than in the western office because I will have
to check with the international office, myself.
The Chairman. The source of the information is immaterial and get
it as accurately as you can and submit it.
Mr. Brewster. I will do the best I can.
Mr. Kennedy. Now, going back to this health and welfare funds
and the pension fund, is there a brokerage arrangement on those, on
any of those funds?
Mr. Brewster. There is a broker and a representative of the organi-
zation.
Mr. Kennedy. He is a broker on which fund — the health and wel-
fare?
Mr. Brewster. There is a setup of a broker on health and welfare
and another different setup on pensions.
Mr. Kennedy. Is it the same broker in both ?
Mr. Brewster. One of the same brokers is in the pension plan with
a man by the name of Sandy Bernbaum. They are George Newell
and Sandy Bernbaum. George Newell is the broker of the health and
welfare.
Mr. Kennedy. He is the broker of the health and welfare ?
Mr, Brewster. Yes, sir.
Mr. Kennedy. Now, approximately what is his income each year
from the health and welfare fund ?
Mr. Brewster. His brokerage is paid through the insurance com-
pany.
Mr. Kennedy, Approximately what is his fee each year ?
Mr. Brewster. I believe it runs approximately $300,000.
Mr. Kennedy. About $300,000 ?
Mr. Brewster. I would say that.
Mr. Kennedy. The figure that we have is that it runs between four
and five hundred thousand dollars, is that right ?
Mr. Brewster. There is 25 percent of that or one-fourth of that
that goes to the City of Hope Hospital, so that will cut It down, prob-
ably, to what I said, about what I said.
Mr. Kennedy. About $300,000?
Mr. Brewster. I think that is right.
Mr. Kennedy, That he receives each year in brokerage fees ?
Mr. Brewster. Yes.
Mr. Kennedy. It has been established, Mr. Brewster, that you
received from Mr. George Newell, in the years, 1951, 1952, and 1953
approximately a little over $5,000 in Affiliated Fund, Inc., stock, which
IMPROPER ACTIVITIES IN THE LABOR FIELD 1207
Mr. Newell said was for commissions. Will you explain that? I do
not think you have ever explained that. Will you explain that before
this committee ?
Mr. Brewster. That is not true.
Mr. Kennedy. That is $5,000 for each year.
Mr. Brewster. That was the amount of money that Mr. Newell paid
me for managing the stable during those years. And it did not come,
from any knowledge of mine, fiom that at all. If it had, I would not
have taken it.
Mr. Kennedy. Mr. Newell marked it down as commissions paid
on his income-tax return.
Mr. Brewster. I cannot help what he marked it down. I had not
any knowledge of it and I would not have taken it if I had known
that it came from any commissions from the insurance or health and
welfare.
Mr. Kennedy. What services were you performing for him that
warranted your receiving approximately $5,000 each year, in 1951,
1952, and 1953 ?
Mr. Brewster. I was managing the entire part of the stable. I
was seeing, on claiming horses — seeing that they were properly taken
€are of and so forth.
Mr, Kennedy. Were you not president of local 174, or secretary-
treasurer of 174 at the same time ?
Mr. Brewster. Yes, sir. And any time I did this work it was
before and after hours of working for the organization.
Mr. Kennedy. What do you mean "before hours"? What time
w^ould you be getting up in the morning ?
Mr. Brewster. 4 : 30.
Mr. Kennedy. And what sort of work would you be doing with
the horses then ?
Mr. Brewster. In Seattle when I was there, or any other place,
I would instruct and look over the stable in its entirety and see what
horses needed to be worked, what horses needed to be walked, what
horses needed to be run.
Mr. Kennedy. Would you get up every morning at 4 : 30 and see
what horses needed to be worked ?
Mr. Brewster. Every time I was in any place Avhere the horses
were worked.
Mr. Kennedy. How often was that that you w^ere where the horses
needed to be worked ?
Mr. Brewster. I would say that it was probably 50 percent of
the time.
Mr. Kennedy. That you were in Seattle ? Would you say that 50
percent of the years 1951, 1952, and 1953 you got up at 4 : 30 in the
morning to see that the horses were walked ?
Mr. Brewster. Yes, sir ; I got up at 4 : 30 every morning.
Mr. Kennedy. You did not have Terry McNulty or any of these
other employees that could do that ?
Mr. Brewster. No ; I didn't have them do that.
Mr. Kennedy. Was it because you were interested in saving the
money that you did not have an employee do it — perform it for you ?
Mr. Brewster. I was interested in seeing that the horses were
properly taken care of.
1208 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Keistxedy. And he was paying yon the $5,000 which he says is
for commissions, he was paying you $5,000 to see that the horses were
walked ?
Mr. Brewster. Can I see that statement and see when it was made
and so forth ? I think that he has corrected one since.
The Chairman. Let us get one thing clear now. Counsel is refer-
ring to a commission. Upon what premise would you charge a com-
mission for going down to the stable and seeing if the horses need
walking? I just do not understand the commission payment on that
basis.
Mr. Brewster. I don't know. Senator, whether you know, but it is
just as important, sometimes, to walk a horse as it is to
The Chairman. I am not talking about that. INIaybe a horse needs
to walk. But what I am talking about is upon what premise do you
base a commission ?
Mr. Brewster. I think it all comes under the category of work.
The Chairman. I think that would be salary, would it not, not a
commission?
]Mr. Brewster. I took it as a salary. I didn't take it as a commission.
1 never knew at any time. I thought that that came out of his own
moneys.
The Chairman. All right. Was it a salary by the hour, by the
week, by the month ?
Mr. Brewster. By the year.
The Chairman. By the year. What was the arrangement ?
Mr. Brewster. $5,000 a year for those 3 years.
The Chairman. Just a flat $5,00 a year ?
Mr. Brewster. That is right.
Senator Ervin. Mr. Chairman, to borrow an Army expression of
paydays, it looks like not only the horses were walked, but the ghosts
were walked, also.
The Chairman. Senator Ives ?
Senator Ives. I am not clear yet as to what happened to the $10.40,
Mr. Brewster, collected from the employer. Did you say that the
$10.40 for the individual worker comes from the employers for this
health and welfare funds ?
Mr. Brewster. Yes, sir.
Senator Ives. What happened to it? You told me when I asked you
the question as to what happened to it, you said it was all put in bank
deposits, I was not here when you were testifying yesterday on this,
I do not know what you said yesterday, but suddenly now it is re-
vealed that part of it goes into insurance. Tliat is the question I asked
you and you said you did not.
Mr. Brewster. It don't. That isn't anything to do with
Senator Ives. Well, where is the money going? You are talking
about some kind of an insurance plan here.
Mr. Brewster. Well, I don't know what you are talking about.
Senator Ives. I am talking about some kind of an insurance plan
in connection with your health and welfare program. What is this
money that you are talking about, that you are talking about to counsel
here, being paid for commissions?
Mr. Brewsitir. This is altogether a different setup altogether.
Senator Ives. What has this broker got to do with it?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1209
Mr. Brewster. ^Vliat has the broker got to do with it ?
Senator Ives. Yes,
Mr. Brewster. I think all of these people have a brokea\ I think
there is a broker
Senator Ives. All of what people have a broker?
Mr. Brewster. All funds have a broker; do they not?
Senator I\^s. No; not if you put them in bank deposits. You do
not have to have a broker for that. That is why I am trying to find
out wliat it is all about. You told me that you put all of this money
you collected, in other words, every bit of' money that came out of
that $10.40 per head, you put it in bank deposits. Now it suddenly
emerges that it is not in bank deposits. How much is and how much
is not?
Mr. Brewster. Well, we can break it down. I think it is 86 percent
tliat goes in and the other 14 percent
Senator Ives. Goes in what?
Mr. Brewster. Into the health and welfare.
Senator Ives. I am not asking that question. I am asking where
in blazes name the money goes that you get out of this $10.40. Wliat
goes into bank deposits and what goes into something else?
(At tliis point, the chairman withdraw from the hearing room.)
Mr. Brewster. I can't really follow you.
Senator Iat^s. Well, it is very simple. To start with, you said that
every bit of it was put in bank deposits.
Mr. Brewster. Will you let me finish ?
Senator Ives. Go ahead. I am trying to find out.
j\I]-. Brewster. INIaybe I can get it out. I might be a little thick
on what you are talking about. Out of every dollar tliat is put in
for health and welfare that goes to the insurance company, there is
86 cents of that dollar that goes into benefits of health and welfare.
After
Senator I\'es. Just a minute. Wait a minute.
You told me nothing about tliat in reply to tJie questioning I
directed at you to start with.
All right. Go ahead.
Ml-. l^REWSTER. I am sorry I didn't. I wasn't holding anything
back. It is just one of those things.
Senator Ives. You did not say a word about any of that. Go
ahead.
Mr. Brewster. I thought that you knew how insurance companies
o[)erate. On insurance ]>lans, I tliink it is natural that they go
through the insurance company, and they have a definite amoimt of
money that they charge.
Senator Ives. You say 86 percent goes to the insurance company ?
Mr. Brewster. Eighty-six percent goes into the welfare fund.
Fourteen precent goes into the insurance companies for their certain
operations and so on and so forth. It is broke down. It has been ex-
plained to me, but I cannot explain it in detail now. I know 2 of that
14 percent is brokerage. The other 12 percent, I think, is profit,
administration, as far as they are concerned, and something else.
Senator Imss. Now, that money has to do entirely with insurance
companies, right?
Mr. Brewster. That money is in insurance companies; yes.
Senator Im5s. Of that 100 percent
1210 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Yes.
Senator Ives. 86 percent is paid out for health and welfare, 14
percent for brokerage and other fees in connection with it, is that
right?
Mr. Brewster. Yes, sir; that is right.
Senator Ives. Where do you get your bank deposits ?
Mr. Bkewstek. Bank deposits, the 86 percent goes back into the
funds, and those funds are set up, the bank deposits, on any surplus
that we do not pay in benefits during the year.
Senator Ives. I do not follow you on that at all. I suppose your
insurance company is looking after the benefits.
Mr. Brewster. There isnx any real dividends. The dividends are
any surplus.
Senator Ives. I am not talking about dividends.
(At this point, the chairman entered the hearing room.)
Senator Ives. What insurance companies are you paying brokerage
fees to ?
Mr. Brewster. Occidental.
Senator I^'es. Occidental ?
Mr. Bbewster. Yes.
Senator Ives. What role does that insurance company play in this?
I am not clear at all as to what the role is that the company plays.
You are evidently paying for some kind of service here.
Mr. Brewster. We put these all out for bids. Senator. We have had
7 or 8 bids. They run from 60 j^ercent to 86, on what they will give
you back or what they charge. Some of them charge from 14, this is
the lowest one that we have ever been able to get a bid, and we have
sent the bid out as many as to 10 top insurance companies, and they
all have a definite charge. That runs between 14 percent and 20
percent. By a vote
Senator Ives. Twenty is very high. I happen to kown.
Mr. Brewster. Well, some of them do.
Senator Ives. I know they do. There is no provocation for it,
either.
Mr. Brewster. I don't think there is.
Senator Ives. No.
Mr. Brewster. I am going to work as hard as I can to have this
cut down as much as I can.
Senator Ives. Now you are talking about the service you are getting
out of the Occidental Insurance Co., are you not?
Mr. Brewster. Yes.
Senator Ives. What does that service cover? I want to find out
where the money is going.
Mr. Brewster. That insurance covers a guarantee that we will get
86 cents of every dollar that comes in their bank into the plan.
Senator Ives. Back into the plan ? What is the plan ?
Mr. Brewster. The health and welfare.
Senator Ives. I know tliat, but what is it? What does it cover ? Is
that where you get your money to put into the banks, the bank depos-
its, the amount that comes back from the insurance company ? Or is
that the refund tliat you get, based on experience rating?
Mr. Brewster. No ; that is the moneys that there be a surplus after
the end of the year after the operation of a year. It would be about
the same thing.' You would probably term it the same thing.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1211
Senator Ives. Tliat is where you get the bank deposits, is that it?
Mr. Brewster. Yes, sir.
Senator Ives. You see how lost I was when I did not know any of
the r.est of this operation you are talking about.
Mr. Brewster. I have been rolling and rattling around here for 2
weeks. I have been lost, too.
Senator Ives. No ; you have not been rattling around the business
of the Occidental Insurance Co. when I was here.
Thank you.
Mr. Brewster. Thank you.
Mr. Kennedy. Mr. Chairman, we have here two of the gifts of stock
or payments of stock for the year 1952 and 1953 from Mr. George
Newell to Mr. Frank Brew^ster.
The Chairman. The Chair would like to present to the witness a
photostatic copy of a document which purports to be a copy of an in-
voice, I believe, and it indicates that a copy of this invoice was mailed
to the witness, Mr. Brewster.
Mr. Brewster, W'ill you examine that invoice and see whether you
recognize it and if you received it along with the check?
(Document handed to witness.)
(At this point, Senator McNamara withdrew from the hearing
room.)
(The witness conferred with his counsel.)
The Chairman. The Chair used the word check when I shiould
have said stock. Did you receive that invoice along with the stock in
the Affiliated Fund, Inc. ?
Mr. Brewster. Yes, sir ; I did.
The Chairman. Then you knew at the time you received it that this
was not coming out of his personal funds, did you not ?
Mr. Brewster. I did not. It don't say there that it did.
Tlie Chairman, It says that due to arrangements you made with
Mr. Ochsner. Who is Mr. Ochsner? "In accordance with your ar-
rangements with Mr. Ochsner"
Air. Brewster. I don't know a Mr. Ochsner.
The Chairman. You said you would be paid a salary of $5,000 a
year. What is the amount of that voucher ?
Mr. Brewster. That is $5,.300-and-something, I believe.
The Chairman. How was that arrived at ?
Mr. Brewster. I don't know how that was arrived at.
The Chairman. It was arrived at at the price of the stock, was it
not ? Look and see.
Mr. Brewster. That is what it was ; yes.
The Chairman. Does it not show the price of the stock there at that
time to be — what ? At $5 what ?
Mr. Brewster. $5.36 a share.
The Chairman. And for 1,000 shares, is that correct ?
Mr. Brewster. That is correct.
The Chairman. That document may be made exhibit No. 87.
(The document referred to was marked "Exhibit No. 87," for refer-
ence and will be found in the appendix on p. 1434.)
The Chairman. I hand you a similar document and ask you to
examine it and identify it. It appears to be the invoice for the year
of 1953.
1212 IMPROPER ACTIVITIES IX THE LABOR FIELD
(Document handed to witness.)
( The witness conferred with his counsel.)
The Chairmax. Do you recognize it as an invoice that you received,
a photostatic copy of the invoice you received ?
Mr. Brewster. Yes, sir.
The Chairman. All right. It may be made exhibit No. 88.
(The document referred to was marked "Exhibit No. 88," for refer-
ence and will be found in the appendix on p. 1435.)
The Chairman. Did you have an arrangement with anybody?
What was your original contract agreement where you would be paid
$5,000 per year?
Mr. Brewster. Just a verbal agreement.
The Chairman. You would be paid $5,000 a year in cash ?
. (At this point. Senator Ives withdrew from the hearing room.)
Mr. Brewster. No ; he said each year that he would like to have riie
save some money and he would buy a thousand shares of stock for me.
The Chairman. Each year he would buy a thousand shares of
stock?
Mr. Brewster. Yes. and at that time it was $5 a share. "
The Chairman. If it was going to be 1,000 shares each year, tou
could not know what it was going to cost, could you? Stocks do fluc-
tuate a little, do they not. in price ?
Mr. Brewster. Yes ; they do.
-: The Chairman. So there was no arrangement about $5,000 a year as
you originally testified, but there was an arrangement for 1,000 shares
of stock each year; is that correct?
Mr. Brewster. He told me that he would pay me $1,000 a year and
with that he would buy the stock.
The Chairman. Thathewouldpay you what?
Mr. Brewster. $5,000 a year and with that he would buy this stock.
At that time I thought that the stock — I think it was pretty close to
that amount at the time that we made the original agreement.
The Chair3han. On the last documents I showed you, the stock had
gone down to $5.17 per share.
Mr. Brewster. That is true.
The Chairman. So your check was $5,170 ; is that correct?
Mr. Brewster. That is true.
The Chairman. You say vou never knew this came out of brokerage
funds?
Mr. Brewster. I did not.
The Chair^ian. You never knew it was a commission ?
Mr. Brewster. I did not.
The Chairman. You referred to it as a commission to begin with.
Mr. Brewster. I never did.
The Chairman. You never understood it to be a commission ?
Mr. Brewster. I did not.
The Chairman. All right. Proceed, Mr. Counsel.
Mr. Kennedy. You have no explanation as to why he would make
the deduction in this insurance part of this income-tax return rather
than on the stable? i i . . -u ^
Mr. Brewster. I have no way of telling, but I understood later that
he had changed that statement that he made first. AVliich one have
vou irot ? Could I see that one?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1213
Mr. Kennedy, It is 1051.
Mr. Brewsi-ek. Yes. There has been another statement. Did you
ask him on any statement since then ? It has been changed. I wish
that you would get all of the evidence and the dope.
Mr. Kennedy. 1951 we have.
Mr. Brewster. Yes; but there is one after that.
Mr. Kennedy. Did you ultimately sell him back that stock?
Mr. Brewster. No. I just sold the stock.
Mr. Kennedy. He did not buy the stock back from you ?
Mr. Brew STER. No.
Mr. Kennedy. He did not purchase it
Mr. Brewster. Wait a minute. I think I sold the stock through
his broker. Whether he bought it back or not, I don't know. I know
that I got rid of the stock.
Mr. Kennedy. That was for approximately $11,000 that you sold it
through his broker ?
Mr. Brewster. I think I sold it all.
Mr. Kennedy. It is for approximately $11,080 that George Newell
purchased the stock. Are you sure you didn't sell it directly to liini ?
Mr. Brewster. Not to my knowledge. It was through his broker.
Mr. Kennedy. Did you know George Newell was buying the stock
back?
Mr. Brewster. No; I didn't know that.
Mr. Kennedy. You did not know that ?
Mr. Brew^ster. I don't know\ He might have bought it back. I
don't say he didn't.
Mr. Kennedy. Did you discuss with him about his purchasing the
stock back, repurchasing the stock \
Mr. Brew\ster. I told him I wanted to get rid of it, and he said, 'T
will call my broker and it can go through my broker."
Mr. Kennedy. You say this was for getting up in the morning and
taking care of the horses ?
Mr. Brewster. That is right.
Mr. Kennedy. You have been in partnership, I take it, with Mr.
George Newell ?
]Mr. Brewster. I was ; yes, sir.
Mr. Kennedy. What was that partnership ?
Mr. Brewster. We first originally were in partnership to, one time,
buy a piece of property.
Mr. Kennedy. "\^Tia't year was this ?
Mr. Brewster. Gee, I think it was around 1949 or 1950. You have
the dates there, haven't you, somewhere?
Mr. Kennedy. It was around 1950.
Mr. Brewster. I am just guessing. I think it was around 1949 or
1950, and we purchased a piece of property.
Mr. Kennedy. How much money did you put up for the piece of
property ?
Mr. Brew^ster. Around $5,000 apiece. Five-something. It was
around
Mr. Kennedy. Could it be $3,250 that you put up ?
Mr. Brewster. No ; I think it was more than that.
Mr. Kennedy. Go ahead. Originally ?
Mr. I^rewster. What do you want to know" ?
1214 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. I want to trace through your financial dealings with
Mr. Newell, and I want to start with this original transaction. I want
to trace it in detail. Will you try to assist me ?
Mr. Brewster. Yes. If you will tell me what you want, I will try
and assist you.
Mr. Kennedy. Let us start at the beginning when you were going
to purchase the land with Mr. Newell. How much money did each of
you put up ?
Mr. Brewster. The piece of property, I believe, was around $11,000»
and I thought we put up 50 percent apiece.
Mr. Kennedy. I guess the figure is $6,050 each that you put up.
Mr. Brewster. That is closer. I thought it was around 11.
Mr. Kennedy. So you purchased the land, did you ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. And then what happened ?
Mr. Brewster. Then we sold the land.
Mr. Kennedy. How much did you sell the land for?
Mr. Brewster. $25,000.
Mr. Kennedy. To whom did you sell it ?
Mr. Brewster. The county of Los Angeles.
Mr. Kennedy. Did you have any other business transactions with
Mr. Newell?
Mr. Brewster. To my recollection, the only other one was the horse
business.
Mr. Kennedy. What was the hoi*se business? Wliat did you do
on that?
Mr. Brewster. We bought horses together.
Mr. Kennedy. How much did you put in originally on the purchase
of horses ?
Mr. Brewster. We took this money that we got from the land
Mr. Kennedy. That is $25,000 ?
Mr. Brewster. Yes.
Mr. Kennedy. All right; $12,500 each you put into what?
Mr. Brewster. What horse ?
Mr. Kennedy. Well, what did you do? You each had $12,500.
What did you do with your $25,000 ?
Mr. Brewster. We started buying horses.
Mr. Kennedy. Where did you keep the horses ?
Mr. Brewster. At the racetrack.
Mr. Kennedy. What racetrack did you keep them at?
Mr. Brewster. Well, they go from one to another, when they arfr
racing, when they are traveling.
Mr. Kennedy. Did you have a firm name or a company name ?
Mr. Brewster. Yes,* sir.
Mr. Kennedy. What was the name of the company?
Mr. BiiEWSTER. Breel.
Mr. Kennedy. So in this organization, each one of you had $12,500 ;
right?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Did you put any more money in after that?
This is Breel Stable. Each one of you had '$12,500.
Mr. Brewster. Yes ; we put in money ; but when we put it in, how
much, and so forth, I cannot give you facts and figures on it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1215
Mr. Kennedy. Did you each put in the same amount of money ?
Mr. Brewster. No, sir. At different times he put up my share.
Mr. Kennedy. He put up your share ?
Mr. Brewster. Yes.
Mr. Kennedy. A])proximately liow much money did you put in?
Let us say both of you, and then you can tell me approximately how
much you put in and how much he put in. How much did both of
you put in durin«^ this period of time?
Mr. BREwsrER. I cannot say. It would be a guess. It is awful
hard to figure it because you would have to look at the record in its
entirety t^cause there might be a figure there where we might have
lost a horse for $10,000, and then went and claimed another horse for
probably $10,000.
Mr. Kennedy. I would think, Mr. Brewster, if he was putting up
part of your share, and you were getting up at 4 : 30 in the morning,
walking the horses, he would have said, "I put in part of your share,
let us oii'set them,'' instead of paying $5,000.
Mr. Brewster. I don't think so. I don't think that would be a good
way at all.
Mr, Kennedy. You would not?
Mr. Brewster. Xo.
(At this point. Senator Mt'Naniata entered the hearing room.)
Mr. Brewster. And I don't think he would.
Mr. Kennedy. Could you tell us a little more about this business
transaction? This must have been fairly important.
Mr, Brewster. What would you like to know about it?
Mr. Kennedy, I would like to find out a little bit about how you
arranged it with him, how much money you put in,
Mr, Brewster. I haven't any of the information. You have it. I
don't know what you are trying to get.
Mr. Kennedy. I will tell you what I am trying to get.
Mr. Brewster. All right. Let's hear it.
Mr. Kennedy. I want to find out how much money you put into the
Breel Stables,
Mr. Brewster. I don't know.
Mr. Kennedy, Tell me approximately how much money Mr. Frank
Brewster put in the Breel Stables. You can tell me that. That is
only in the last 3 or 4 or 5 years.
Mr. Brewster. I don't know.
Mr. Kennedy. You have no idea?
Mr. Griffin. Mr. Chairman, the witness here has answered throe
times that he did not know. Can't this be developed by further ques-
tioning? Wh}^ should we keep arguing with the witness?
The Chairman. Yes, sir; it will be developed by a little further
questioning.
(At this point. Senator Goldwater entered the hearing room.)
The Chairman. Within the past 3 years you have put how much
money into this Breel Stables?
Mr, Brewster, In the past 3 years we haven't had the Breel Stables.
The Chairman, All right ; the last 3 years that you had it.
Mr. Brewster. The last 3 years prior to the last 3 years that yon
are talking about?
The Chairman. You heard what I said. You understood me.
89.330— 57— pt. 4 8
1216 IMPROPER ACTIVITIES IN THE LABOR FIELD
jNIr. Brewster. I really do not know.
The ChairxMax. You have some idea about it.
Mr. Brewster. I haven't any idea.
The Chairman. $1,000?
]\Ir. Brewster. It is much more than that.
The Chairman. $20,000?
Mr. Brewster. I do not know.
The Chairman. Mr. Brewster, you astound me with your lack of
knowledge and occupying the position you do.
Mr. Brewster. Maybe I have a bad memory.
The Chairman. Well, obviously.
Proceed, Mr. Counsel.
Mr. Kennedy. If you do not know how much money you put into
the stables, can you tell us how much money you got out of the stables ?
JNIr. Brewster. I cannot.
Mr. Kennedy. When did you sell the stables, Mr. Brewster?
]\Ir. Brewster. I split up,' I think, about 21/2 years ago. I don't
know the exact date on that either. I haven't any information in front
of me at all.
Mr. Kennedy. I understand that. But how much money did you
get out ? A^liat did you get out of the stables ?
Mr. Brewster. I owe George Newell for what he put in. I owe
him approximately $40,000.
Mr. Kennedy. Do you have some kind of a note or arrangement ?
Mr, Brewster. We have not arranged that part of it, because there
is some difference of opinion on what he should receive. I don't think
that our figures figure that together.
Mr. Kennedy. Could you tell me this: AVliy was he paying you
$5,000 for a period of o years and you end up owing him $1:0,000?
You still wouldn't want to offset those things at all, you wouldn't
think that was good business practice, to have offset that ?
Mr. Brewster. I think that these things came after that period of
time that we got into the hole to the part of $40,000.
j\Ir. Kennedy. Tell me this : When you sold these stables, Breel
Stables, why would you end up owing him $40,000, when you went
into it equally originally?
Mr. Brewster. Because he put in more money than I.
Mr. Kennedy. "V-V^ien joii sold the stables, did he not get more money
out of the stables ?
Mr. Brewster. He sold the stables to me and they were based on
so much a horse. I have some of that data in Seattle, and I haven't
anything along that line here.
Mr. Kennedy. Did you pay him for the horses, or what he sold to
you?
Mr. Brewster. I owe him for the horses.
Mr. Kennedy. How much do you owe him ?
Mr. Brewster. Approximately $40,000. It might be $42,000 or
$43,000.
Mr. Kennedy. Have you given him a note for it ?
Mr. Brewster. I have not, but as soon as it is settled about every
transaction, I am going to give him a note.
Mr. Kennedy. How long ago is it that you sold this ?
Mr. Brewster. It is over 2 years.
Mr. Kennedy. And you still haven't given him any note?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1217
Mr. Breavstek. I still haven't given him any note.
Mr. Kennedy. And you still have not figured out how much you
owe him ?
Mr. Brewster. I haven't got it definitely. But I said approxi-
mately it was around $42,000 or $40,000.
yir. Kennedy. Mr. Chairman, we have a witness here who might be
able to refresh Mr. Brewster's memory on this.
The Chairman. Mr. Brewster, stand aside.
Mr. Kennedy. Mr. Salinger '^
(Members present at this ])oint: The chairman, Senators Ervin,
]McXamara, Mundt, and Goldwater.)
The Chairman. You do solemnly swear that the evidence you
shall give before this Senate select committee shall be the truth, the
whole truth, and nothing but the truth, so help you God ?
Mr. Salinger. I do.
TESTIMONY OF PIEKRE E. G. SALINGER
The Chairman. Be seated and state your name, place of residence,
business, or occupation.
Mr. Salinger. My name is Pierre Salinger. I live in Washington,
D. C. I am an investigator for this committee.
The Chairman. Just employed recently since the committee was
established? ,, , ,;
Mr. Salinger. Yes, sir. , •.-.:.'/■
The Chairman. All right, Counsel, you may proceed.
Mr. Kennedy. Mr. Salinger, you ha\'e spent the last 2 or 3 weeks
out on the west coast ; is that correct ?
Mr. Salinger. That is right, sir.
Mr. Kennedy. And one of the matters that you have been in-
vestigating for the committee is certain transactions of Mr. Frank
Brewster?
Mr. Salinger. That is right, sir.
yiv. Kennedy. And you have had interviews with Mr. George
2s e well, with whom Mr. Frank Brewster was in partnership?
Mr. Salinger. I have, sir.
Mr. Kennedy. In the Breel Stables; is that right?
Mr. Salinger. I have.
Mr. Kennedy. And you have also made a study of the books of
the Breel Stables ?
Mr. Salinger. I have, sir.
Mr. Kennedy. Would you give the committee an outline as to
ay]) at liappei^ed so far as the purchasing of the Breel Stables and
the sale of the Breel Stables by Mr. George Newell to Mr. Frank
Brewster?
Mr. Salinger. Yes, sir.
The Chairman. You had the books of this company; did you?
^Ir. Salinger. The books were subpenaed. Senator, and they are in
Seattle under subpena.
The Chairman. They are under subpena, and vou have examined
them ?
:\rr. Salinger. I have; and I have talked to Mr. Clifford Whittle,
the accountant for the Breel Stables, and we have gone over the
transactions and he has explained them to me from his books.
1218 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Proceed.
Mr. Salinger. Originally, Mr. Newell and Mr. Brewster each put
in $6,050 to buy a ]iiece of property adjacent to the Santa Anita Race
Track in Los^Vngeles, Calif. Mr. Newell st:ated to me that Mr.
Brewster had told him about this property, and that it was a very
good buy, and Mr. Newell said he was grateful to Mr. Brewster for
letting him on the deal, and they put in the money originally and
bought this property.
They eventually turned aroimd and sold the property for $25,000
to the County of T^s Angeles. This money was used to make the
original ])urchase of horses in the Breel Stable.
Over the period of time
Mr. Kennedy. AVhen was this, approximately, that they made the
purchase of the horses of the Breel Stables 'i
Mr. Salinger. Approximately 1951.
In the period from 1951 to July of 1955, when the Breel Stable was
dissolved at the request of Mr. Newell, there were some purchases made
for horses by that stable, and our examination of the books showed that
a substantial amount of purchases for horses were made by Mr. Newell,
and that in those cases he woidd put in Mr. Brewster's interest. So
when thev arrived at the period when they were goino; to dissolve this
stable, this is exactly from their books, the relative positions of the two
partners in this corporation, Mr. Brewster and Mr. Newell, the corpo-
ration owed Mr. Newell the sum of $52,127.75, and the corporation
owed Mr. Brewster the sum of $1,563.53.
The disparity in the figures owed to the two partners in this corpo-
ration was due' to the heavy investments that had been made in Breel
Stables by Mr. Newell as opposed to the almost lack of investment
made by Mr. Brewster.
They settled this account in this way : Mr. Brewster was given
horses valued at $42,496.43; he was given a hoi-se truck valued at
$1,262.93 ; and he was given an electro wrap nuichine valued at $606.67,
for a total of $44,366.03. The books of the Breel corporation reflect
that in consideration of this $44,366.03 which Mr. Brewster took out of
the stable, there was a note in the amount of $17,750. However, I
questioned
Mr. Kennedy. The note was from whom to whom ?
Mr. Salinger. The note was from Mr. Brewster to Mr. Newell. In
other words, there was an amount due Mr. Newell by Mr. Brewster.
Mr. Kennedy. That note, according to the books, was in existence (
Mr. Salinger. That is right. So then I questioned Mr. Newell
about the existence of this note, and he said there was no such note.
He said, however, that he felt Mr. Brewster owed him this amount of
money and that they would make arrangements for the collection of
the money later.
Mr. Kennedy. What do the records show as far as Mr. Newell ?
Mr. Salinger. For Mr. Newell, all he got out of the company was
this $17,750 note, which he says is nonexistent. He got a bank account
which had $891 in it, another open account which had $1,000 in it, and
the horse Alderman, which had a book value of $9,524. Counting in
the iiote, this is a total of $29,165.
Taking these figures into account, this left Mr. Newell taking a total
loss on the stable of $22,962.75.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1219
Mr. Kennedy. Is that including the note ?
Mr. Salinger. That does not include the note.
Excuse me, that does include the fact that he would be getting the
money from the note.
Mr. Kennedy. What would be the loss if you do not include that
$17,500 note, which he says does not exist.
Mr. Salinger. If you will wait just a second, I will compute it.
Mr. Kennedy. Mr. Bellino says $39,000.
Mr. Salinger. It is a little in excess of $39,000.
Tlie horses which Mr. Brewster — are you interested in the horses
Mr. Brewster took out of the stable ?
Mr. Kennedy. No.
He took a loss, then. How much was Mr. Newell's loss on the stable
Avhen he sold the stable ?
Mr. Salinger. Well, lie took a total writeoft' loss of $22,962.75, and
that is not counting his original investment in horses of $12,500, which
he also had to write oft'. In other words, counting the original in-
vestments he made, from 50 percent of the sale of the property in Los
Angeles, that $12,500 which lie originally invested, plus his $22,962,
it gave him a total loss of around $34,000.
Mr. Kennedy. And what was Mr. Brewster's position?
Mr. Salinger. Mr. Brewster did not take a loss. He ended up
with a ])rofit of $18,066.03. That counts in the fact that he owes Mr.
Xewell $17,750. If you take that note out of existence on the testimony
of Mr. Newell, then you have a greater amount of profit from Mr.
Bi'ewster, amounting to something over $18,000.
Mr. Kennedy. And the loss to Mr. Newell would be then how much?
Mr. Salinger. The loss to Mr. Newell would be around $34,000.
The Chairman- Are there any questions, gentlemen ?
Mr. Kennedy. Did you have something further on the horses that
you wanted to give?
Mr. Salinger. Only tliat the horses involved in this transaction, the
horses which were left over from the Breel Stable, ended up as prop-
erties of the Needmore Stable, which was a partnership which Mr.
Brewster entered into after the Breel Stable went out of existence.
The Chairman. Let me ask you a question. I am trying to follow
this. Does this indicate that in this partnership arrangement in the
Breel Stables, that when the thing was dissolved and settled up Mr.
Brewster had made the minimum investment or the minority invest-
ment, but ended up witli })rofit, and Mr. Newell, who had more sub-
stantially financed the ])roject, ended up with losses?
Mr. Salinger. That is exactly correct, sir.
The Chairman. And tliat is some 2 years ago when the corpo-
ration was dissolved ?
Mr. Salinger. That is correct, sir. I asked Mr. Newell
The Chairman. And no note has been given ?
Mr. Salinger. No note has been given, sir.
The Chairman. So far as you ascertain, no payment has been made?
Mr. Salinger. Right, sir.
The Chairman. This Newell, if the Chair has followed you cor-
rectly, is Newell the one that is getting all the brokerage from the
teamsters ?
Mr. Salinger. That is correct, sir.
1220 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. INIr. Chaimian, could we go over the figures once
more so we make sure we get them clarified ? They change accordmg
to the $17,500.
Could you go over the figures again as to what the sale was so that
we make sure of them ?
Mr. Salinger. Do you want to go through all the figures again ?
Mr. Kennedy. Yes.
Mr. Salinger. At the time of the dissolution of the partnership,
Mr. Newell was owed $52,127.75. He took out of the company a bank
account in the amount of $891, an open account in the amount of
$1,000, the horse, Alderman, with a book value of $9,524.
Mr. Kennedy. Let us keep it at that. That is the total that he took
out except for the note ^
Mr. Salinger. Right sir.
Mr. Kennedy. What is the total ?
That is $11,415 ?
Mr. Salinger. That is right, sir.
Mr. Kennedy. That he came out of the company with ?
Mr. Salinger. Right.
Mr. Kennedy. What would that mean that his total loss was on the
company in the sale of the Breel Stables ?
Mr. Salinger. $40,712.75. That is the exact amount.
Mr. Kennedy. That he took as a loss on the stables? Is that
correct ?
Mr. Salinger. That is right, sir. You are not counting the note.
This is without the note.
Mr. Kennedy. Without the note, he took a loss of how much ?
Mr. Salinger. $40,712.75.
Mr. Kennedy. What about Mr. Brewster ?
Mr. Salinger. Mr. Brewster, who was owed $1,563.53, took out of
the stable 8 horses with a book value of $42,496.43, a horse truck with a
book value of $1,262.93, and an electro wrap machine valued at
$606.07. This is a total of $44,366.03.
Mr. Kennedy. Tliat he took out ?
Mr. Salinger. Right, sir,
Mr. Kennedy. And he was owed $1,563 ?
Mr. Salinger. Right. That was written off. I don't know if you
want to get into that, but that was written off so that it actually
came to zero.
Mr. Kennedy. That was written off because of a debt he owed in
another stable ?
Mr. Salinger. That is right.
Mr. Kennedy. So, actually, he came out of this transaction $44,-
366.03 ahead ?
Mr. Salinger. Correct.
Mr. Kennedy. And Mr. Newell came out $40,712.75, a loss, is that
right?
Mr. Salinger. Correct. That is not counting a note.
;Mr. Kennedy. Not counting the $17,500 note ?
Mr. Salinger. Right.
Mr. Kennedy. And this is a company in which they both at least
initially, went in as equal partners?
Mr. Salinger. That is correct.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1221
Mr. Kexnedy. And lliey sold the company and that is what the loss
and profit was ?
Mr. Salinger. That is correct, sir.
Mr. Kexnedy. Senator, we have these registration cards of the El
Eancho Motel, which Mr. Salinger gathered, and if you wanted to
introduce them, you could introduce them through him. He was the
investigator who picked them up.
The Chairman. Mr. Salinger, the Chair hands you four photostatic
copies of documents. Will you please identify them and state what
they are?
(Documents handed to witness.)
The Chairman. May I ask first if you obtained those photostatic
copies.
Mr. Salinger. I did, sir.
The Chairman. In connection with your service to the committee?
Mr. Salinger. I did, sir.
The Chairman. All i-ight. Now state what they are.
Mr. Salinger. These four photostatic copies represent registration
cards at the El Eancho Motel in Millbrae, Calif.
Tlie Chairman. By whom?
Mr. Salinger. One of them represents the registration of Frank
W. Brewster. The second represents the registration of Mr. and Mrs.
Mel Eisen. The third represents the registration of Richard Caval-
lero, and the fourth represents the registration of T. McNulty.
Tlie Chairman. They will be made exhibit 89-A, B, C and D.
The documents referred to were marked exhibits 89-A, 89-B, 89-C,
and 89-D for reference and will be found in the appendix on pp.
1436-1442.)
The Chair]man. You say they are registrations. Do they show
who paid the bills?
Mr. Salinger. Yes, sir, they do in several cases.
On the registration of Richard Cavallero, the front of the registra-
tion bears the words "Charge to Frank Brewster," and on the back
it also says, "Charge to Mr. Frank Brewster, 552 Denny Way, Seattle,
Wash."
Down here is a notation "$750 okay, $397 amount due, $353 returned,
paid to Mr. Eisen, 10-3."
I queried the motel owner and obtained his affidavit which was read
into evidence here yesterday, which indicated that this $750 repre-
sented a check from the Western Conference of Teamsters which went
to pay Mr. Cavallero's bill, and the money left over from paying Mr.
Cavallero's bill was given in cash to Mr. Mel Eisen.
The Chairman. I believe that was testimony yesterday and we did
not have at that time these photostatic copies of the registration.
Mr. Salinger. Right, sir.
The Chairman. Are there any further questions with respect to
those, gentlemen ?
They have been placed in the record, as the Chair has stated.
I will ask that in the record of the testimony yesterday where they
were referred to, it be indicated that they subsequently were introduced
into the testimony.
(The documents were referred to on p. 1119.)
Ai-e there any further questions ?
All right, Mr. Salinger, you may stand aside for the present.
1222 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster, resume the stand, please.
(Members present at this point: The Chairman, Senators, Ervin,
McNamara, Mundt, and Goldwater.)
TESTIMONY OF FRANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
The Chairman. Mr. Counsel, you may proceed.
Mr. Kennedy. Does that refresh your recollection at all,
Mr. Brewster?
Mr. Brewster. I think it does, to the point that I said I felt that
I owed George Newell some $40,000.
Mr. Kennedy. Do you think that it is a proper transaction for the
l)resident of the Western Conference of Teamsters to allow himself
to be owing the broker for the insurance fund $40,000 ?
Mr. Brewster. I have known George Newell long before he brok-
ered, all my life. I think as a friend, regardless of what business he
is in, I think it is all right. I am not taking any advantage of the
position.
Mr. Kennedy. He makes from the AVestern Conference of Team-
sters approximately $300,000 each year, does he not, net?
Mr. Brewster. Yes. It is one of the lowest, brokerage fees in the
business.
Mr. Kennedy. I am not questioning that. He still makes $300,000
each year. You are president of the Western Conference of
Teamsters.
Mr. Brewster. I am not in any way obligating myself to
Mr. Newell.
Mr. Kennedy. You owe him $40,000.
Mr. Brewster. And I intend to pay him.
Mr. Kennedy. Have you written any note?
Mr. Brewster. There is still an argument about the books. They
are not just exactly the way that they, have been produced. There
is a matter of a mare that he has that isn't on there that I sold him.
That hasn't been deducted. It is a mare by the name of \Yliang Bang.
The Chairman. Is this a kind of a whang bang transaction ?
Mr, Brewster. She was a whang-bang mare. She won 40-some
thousand dollars, too.
The Chairman. Mr. Brewster, this is a strange circumstance, it
seem to me. I am sure Mr. Newell must be a pretty good businessman.
Obviously, you would be rated as such, I assume, occupying the posi-
tion you do have, having the responsibility for hundreds of thousands
of working men and their finances. Can you explain why a $40,000
debt like this is permitted to drag for a couple of years without any-
thing being ascertained as to the exactness of it, or any arrangements,
any definite understanding with respect to the payment of it? Can
you give us any explanation for that J
Mr. Brewster. We have been discussing it less than that period
of time, and I still contend that the amount is not right. He is de-
manding a note. He is a very good businessman. He will get a note
and he will get paid.
The Chairman. AAHiat about the note for $17,500 ?
Mr. Brewster. That one I do not recollect. I don't know what he
is talking about.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1223
The Chairman. Is that the only note or arrangement that has ever
been made ?
Mr. Brewster, Well, I don't recall that note for $17,000, and I
don't know what it refers to. The note that I am talking about is the
note on the transaction including the horses, and what his percentage
of loss was.
Tlie Chairman. Mr. Brewster, again it is a little strange that a man
of your intelligence, with the position you occupy, could not remem-
ber whether he gave a $17,000 note.
Mr. Brewster. No, I didn't give any.
The Chairman. You have not given any note?
Mr. Brewster. No, not to my knowledge. I haven't signed any-
thing.
The Chairman. Would one gain the impression fi'om the way you
handle your personal financial matters that you might handle the
union's affairs in the same slipshod way ?
Mr. Brewster. I am not able to tell what people imagine.
The Chairman. Do you see nothing wrong whatsoever in your be-
coming heavily indebted to Mr. Newell, taking into account the rela-
tive positions you both occupy with the Teamsters Union, the business
relations with it, and the large profits he is making from business that
he receives from the Western Conference of Teamsters ?
Mr. Brewster. I see nothing wrong with it, and there has been no
motive on my part
The Chairman. You see no conflict of interest ?
Mr. Brewster. No, sir.
The Chairman. You see no conflict of interest in receiving that
stock?
Mr. Brewster. No, sir.
The Chairman. No conflict of interest in your becoming heavily
indebted to him in a business enterprise ?
Mr. Brewster. I do not.
The Chairman. Well, that is your statement.
Proceed, Mr. Counsel.
Senator Mundt. Mr. Brewster, how did Mr. Newell get this posi-
tion that he has as broker?
Mr. Brewster. He did it through a partner of his by the name of
Morganstern.
Senator Mundt. Morganstern ?
Mr. Brewster. Yes, sir. And they were insurance advisers. They
spent in excess of 2 years formulating a health and welfare fund at no
expense to the conference whatsoever. They are not only the broker,
but they are the advisers of the Western Conference of Teamsters.
They sit in, they have representatives that sit in on negotiations and
aid and assist the western conference in receiving and explaining to
the employers on what the health and welfare means, what the cost is,
and all of the particulars in that direction. They are more than
brokers. They have been advisei-s to the Western Conference ever
since the inception.
As I said, they were more than 2 yeai-s, prior to the time that we put
it into effect. They made surveys, studies, had examples, exhibits and
everything else, and then came into our conference, and that is where
we started from.
1224 IMPROPER ACTIVITIES IN THE LABOR FIELD
I want to say at that time the only insurance company that would
take a gamble was the Occidental Insurance, I have no brief for the
Occidental Insurance, other than the}^ were the first ones that would
take a chance on health and welfare that I think is a very good setup
in our area.
Senator ]\IrxDT. Is this a continuing contract that they have? Do
they get this $300,000 every year, or now that the Occidental is han-
dling it for you, is the connnission unnecessary to the broker?
Mr. Brkw^s^ter. No ; the Occidental don't handle it. The Occidental
pays that or any other insurance company would pay that.
Senator Muxdt. As I understand it, Mr. Newell is a representa-
tive of the Occidental Insurance Co., and he handles it as an under-
writer, and gets an underwriter's commission of $300,000 ; is that the
arrangement?
Mr. Brewster. I would say more that JNIr. Newell rej^resented the
Western Conference of Teamsters to make the deal with the Occi-
dental, or whatever otlier company that might bid.
Senator Mundt. You told us that the Occidental got its contract
under a system of competitive bids.
Mr. Brewster. The first one we tried to get competitive bids, but
we were unsuccessful. There wasn't one insurance company that
w^ould bid on it. No. 1, the employer thought it was going to fall on
its face, and, No. 2, the insurance companies weren't very pleased with
it. But now they all want it.
Senator Muxdt. Did Mr. Newell and Mr. Morganstern get their
contracts through competitive bids, too ?
Mr. Brewster. No, sir. IVe hired them as consultants in the first
place. We have places in the western part of the country where the
commission is split because they have representatives on their side
and our side.
Senator ]\Iuxdt. What business was JMr. Newell in at the time?
Mr. Brewster. He was in the hisurance business at the time.
Senator Mundt. Representing Occidental ?
Mr. Brewster. No ; representing himself as a free-lance insurance
adviser and broker.
Senator IMux'^dt. Was Mr. Morganstern also an insurance man?
Mr. Brewster. Yes, sir; he was. He had the firm of Morganstern
& Son, I believe. In my opinion- — he died 2 or 3 years ago — he was
one of the most able men that I have ever seen in the business.
Senator Muxdt. I can see how he would be entitled to a brokerage
]n making his contract with the Occidental and maybe $300,000 would
not be unreasonable if he had devoted 2 years' time prior to that
making the arrangements.
But in the continuing process, I do not see where Mr. Newell con-
tinues to render a service now that you do business directly witji
Occidental.
Mr. Brewster. Wait a minute. We don't do business directly with
Occidental. Occidental is only a vehicle that the insurance is placed
with. The business that Newell does, and his company, he has a repre-
sentative in every major area in the 11 Western States.
Senator Muxdt. Newell does?
Mr. Brew^ster. Yes, sir ; and that representative assists our repre-
sentativas in negotiations on contracts that will include health and
IMPROPER ACTIVITIES IN THE LABOR FIELD 1225
welfare and pension. Tie isn't just sitting there receiving the bro-
kerage. There is a ti'emendous expense to his organization. One
would think that he just sits there and, draws $300,000 a year. That
isn't so. ITe has 5 representatives in 5 different areas, with their offices
in different areas in the 11 Western States, and they aid and assist
joint councils, local unions, and go in and talk to membership and.
discuss the value of the plan and everything else.
We have to have people with that ability to sell not only our own
people but the employer. That is the part^luit George Newell plays.
He just don't sit there and collect the brokerage that one would prob-
ably try and make j'ou think.
Senator ]Muxdt. Is it a continuing service that he renders every
year ?
Mr. Brew^ster. ITe certainly has continuing service, and he is more
than a broker. He is a consultant.
Mr. Kenxedy. Mr. Brewster, when you sold this Breel Stables,
what kind of a discussion did you have with Mr. Xewell about who
^\as going to get what ?
Mr. Brewster. I had a discussion with him. as I remember that I
wanted to dissolve partnership and take the horses over, and he said,
"Well, we will figure out what they are worth, and we will make
a deal."
Mr. Kennedy. This man must be a good businessman. He is owed
$52,000, approximatel3% out of the company, you are owed $1,500, and
then you make a sale of approximately $55,000, sell the Breel Stables
for api^roximately $55,000 that you make out of it, and, as I say, he
is owed $52,000 and vou are owed $1,500. You come out with $44,000
of the $55,000, and he comes out with $11,000.
Mr. Brew^ster. I think the $40,000 is what I owe him.
Mr. Kennedy. I do not understand how he would allow that type
of business to go on when you sold the business. He should have said,
"Well, I am owed this money. This is my money."
Mr. Brewster. He has been saying it.
Mr. IvENNEDY. This is almost a gift to you, Mr. Brewster.
Mr. Brewster. It is not a gift, and you don't take it as such.
Mr. Kennedy. ^Vhen vou sold the business, vou sold the business
for $55,000. *
Mr. Brew\ster. There is a difference of opinion about the amounts.
As soon as that is settled, he will get a note, and interest, and back
interest, and it will be paid.
Mr. Kennedy. There might have been a difference about one of
the mares. But you got nine horses.
Mr. Brew^ster. No : there was about what was put in, too. I didn't
keep these books. Mr. Newell's office kept them. I never saw the
books. I never had an opportunity. I probably had one, if I went
down there, but I never took the opportunity to see them.
Mr, Ivennedy. Out of that company, nevertheless, you got $44,000.
How did you arrange that?
Mr. Brewster. I don't know liow he kept the books. Wliere I
got that, I don't know. But whatever I got was reported in the
income tax, and that is all there is.
Mr. ICennedy. Why did he allow you to take the nine mares or the
nine horses and the van? Why did he allow you to have all those
assets if it wasn't a gift ?
1226 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. It was not a gift.
Mr. Kennedy. Do you have any explanation at all ?
Mr. Brewster. It is still unsettled as to the exact amount that I
owe, and I am going to sign a note and pay for it.
Mr. Kennedy. How much are you going to sign the note for?
Mr. Brewster. For whatever we figure out the exact amomit is.
Mr. Kennedy. There must have been an agreement there, certainly
about the nine horses you were selling. Even if you split it 50-50,
it would still make more sense than the arrangement you did make.
You sold it for $55,000, and you took $44,000 out of the $55,000. You
got that.
Mr. Brewster. I never took $44,000 at any one time. I don't know
where those figures come from. I don't know how they arrived at
them.
Mr. Kennedy. You will agree about $40,000 ?
Mr. Brewster. I have been told — and I am still in a position of
where I think it is roughly that or it was a little more — that he had
the figures. His auditor was in my office himself.
Mr. Kennedy. I am not very familiar with business, but two part-
ners going into business together, and one coming out owing $40,000
and the other coming out making $40,000, I would think that the one
that was owing this money would be reasonably— — ■
Mr. Brewster. If I paid him $40,000 then how would it come out ?
Mr. Kennedy. Excuse me ?
Mr. Brewster. If I paid him $40,000 or gave him a note for $40,000,
how would I come out ? He would make the money '(
Mr. Kennedy. Xo; you would both be even, then.
Mr. Brewster. Well, that is the way it will come out eventually.
Mr. Kennedy. This is 2 years later. I suppose Mr. Newell will
be grateful to the cormnittee for bringing this out so that you will
ultimately
Mr. Brewster. You will probably get a letter of thanks.
(The witness conferred with his counsel.)
Mr. Kennedy. Let me ask you this: T\^iat did you do with the
horses, with the nine hoi-ses? What did you do then with them?
Mr. Brewster. I ran them, raced them.
Mr. I^nnedy. Did you have another stable i
Mr. Brewster. Yes, I had another stable.
Mr. Kennedy. What was the name of that stable?
Mr. Brewster. The Needmore.
Mr. Kennedy. Needmore Stables ?
Mr. Brewster. Yes.
Mr. Kennedy. When did that
Mr. Brewster. I originally started the Needmore back in 1934.
I needed everything then.
Mr. Kennedy. xVnd it has been going since 1984; is that right '^
Mr. Brewster. The name has always been kept intact, and I have
gone away from it and back to it again. It is an assumed name that
you can register every year that you desire on the racetrack or not
register.
Ml*. Kennedy. Was that in existence, the Needmore Stables, at the
same time you had the Breel Stables ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1227
Mr. Brewster. I don't think that it was operating. I might have
had an individual horse or something at that time tliat I operated
mider that, but I am not positive whether I did or not.
Mr. Kennedy. Is that a corporation, a company, or what 'i
Mr. Bremster. No. It is just a name.
Mr. Kennedy. Just a name ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. You were in that by yourself at that time ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. When you took these horses out of the Breel Stables,
you put them in the Needmore Stables ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Were you in that company by yourself, still ?
Mr. Brewster. No.
Mr. Kennedy. Did you bring any partners in ?
Mr. Brewster. Yes.
Mr. Kennedy. Who ?
Mr. Brewster. John Sweeney and Fred Galeno.
Mr. Kennedy. Who is Fred Galeno ?
Mr. Brewster. Fred Galeno
Mr. Kennedy. How do you spell his name ?
Mr. Brewster. G-a-1-e-n-o.
Mr. Kennedy. Who is Fred Galeno ?
Mr. Brewster. Fred Galeno is a person that is in Seattle, Wash.
Mr. Kennedy. What do you mean, a person in Seattle, Wash. ?
Mr. Brewster. Well, you said who is he. He is a person.
Mr. Kennedy. Is he in business in Seattle ?
Mr. Brewster. Yes ; he has a business.
Mr. Kennedy. AYhat is his business ?
Mr. Brewster. It is an amusement business.
Mr. Kennedy. What does that mean? Does he have an orchestra,
or wliat ? What does he do ? What business is he in ?
Mr. Brewster. He is in the amusement business that includes juke-
boxes and pinballs.
Mr. Kennedy. He is in the pinball business ?
Mr. Brewster. Yes. He is one of the oldest — one of the members
of the oldest families in the city of Seattle.
Mr. Kennedy. And you were in partnership with him ?
Mr. Brewster. With the horses.
Mr. Kennt:dy. Do the pinball operators in Seattle have a pinball
operators association?
]\Ir. Brewster. Yes, sir ; they have.
Mr. Kennedy. Is Mr. Galeno an important figure in that associa-
tion ?
Mr, Brewster. I believe he is.
Mr. Kennedy. That is similar to the Pinball Operators Associa-
tion that they have down in Portland, Oreg. ; is that right?
Mr. Brewster. I wouldn't say it was.
Mr. Kennedy. It is different'?
Mr. BREW^sTf:R. Yes.
Mr. Kennedy. Similar to the one down in Portland, Oreg., does
the pinball association sign a contract with the union?
Mr. Brewster. That is right.
1228 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. So it is similar in that way ?
Mr. Brewster. Yes. Probably similar to the one they have here.
I don't know.
Mr. Kennedy. Who signs the contract for the pinball operators in
Seattle?
Mr. Brewster. Local 353. I do not negotiate or have anything to
do with negotiations.
Mr. Kennedy. That is local 353 of the teamsters?
Mr. Brewster. Yes, sir.
Mr. Kennedy. They sign a contract with the pinball operators?
Mr. Brewster. And negotiate the contract.
Mr. Kennedy. Who signs for the pinball operators ?
Mr. Brewster. I have never seen a contract.
Senator Mundt. Is the pinball operation a legal operation in Seat-
tle?
Mr. Brewster. Yes, sir. It is licensed by the city council with an
amusement tax on them.
Senator Mundt. In that regard it is different, then, from Portland.
Mr. Brewster. That is true. That is absolutely true.
Mr. Kennedy. Is Mr. Galeno a member of the teamsters union ?
Mr. Brewster. Yes, sir ; he is.
Mr. Kennedy. He is a member of the association, and he is a mem-
ber of the teamsters union ; is that right ?
Mr. Brewster. That is true, because he is a working owner, and
anybody tliat works at the tools and works at the craft becomes a
member of the union.
Mr. Kennedy. What does working at the pinball machine mean?
Mr. Brewster. Delivering.
Mr. Kennedy. He delivers them himself?
Mr. Brewster. He does it. He drives a truck. He delivers.
Mr. Kennedy. He drives a truck that l^rings the machine?
Mr. Brewster. Yes. He does that type of work. He has other
employees. He just don't do it all himself. He has other employees.
He repairs ancl makes collections, and et cetera, the same as
every other member of the union. Any time that any employer, that
goes for any craft, works at the trade, he carries a card.
Mr. Kennedy. Even though he is an employer?
Mr. Brewster. Even though he is an employer. If he works at
the craft, he is a member, and eligible for membership.
Mr. Kennedy. Your testimony is that Fred Galeno from Seattle,
Wash., goes around and drives a truck?
Mr. Breavster. He drives a truck some of the time. I don't-
Mr. Kennedy. Wait a minute. ■
Mr. Brewster. Yes, he drives a truck.
Mr. Kennedy. He drives a truck on business? I don't mean just
driving n truck for pleasure, but he drives a truck on business. That
is part of the business, he drives the truck himself?
Mr. Brewster. Yes, sir.
Mr. Kennedy. In connection Avith his business ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. And he does that now?
Mr. Breavster. I haA^e seen him drive the truck, I have seen him
with his old clothes on, I haA^e seen him in places where he was
IMPROPER ACTIVITIES IN THE LABOR FIELD 1229
Mr. Kennedy. Repairing the machines?
Mr. Brewster. Yes, sir.
The C'hair^ian. The Chair presents to you a pliotostatic copy of a
document. "Will you examine it and see if you recognize what it is.
(Document handed to ^yitness.)
(The witness conferred with his counsel.)
The Chairman. That is a copy of a contract for pinball machines ?
■" Mr. Brewster. It looks like it.
The Chairman. Mr. Galeno signed it representing as secretary-
treasurer of the Washington Amusement Association ?
Mr. Brewster. Amusement Association of Washington, yes, sir.
The Chairman. The Amusement Association of Washington ?
]Mr, Brewster. Yes.
Mr. Kennedy. That is the same Fred Galeno that you are in busi-
ness with, is that right ?
Mr. Brewster. In the horse business.
Mr. Kennedy. In the horse business. And he is also a member of
the teamsters union?
]Mr. Brewster. Yes, sir. He has been a member of the teamsters
union for, I believe
The Chairman. That document may be made exhibit 90, for ref-
erence.
(The document referred to was marked "Exhibit 90'' for reference
and will be found in the appendix on pp. 1443-1444.)
Mr. Brewster. 30 some years.
Mr. Kennedy. That local that you say signed the contract is local
what ?
Mr. Brewster. 353, 1 think.
Mr. Kennedy. And you say that Mr. Galeno is a member of the
teamsters union because he drives a truck and repairs these machines ?
Mr. Brewster. Yes.
■"Mr. Kennedy. Then why is Mr. Galeno in local 174?
Mr. Brewster. Because he was originally in 174. I think he went
into 174 in about 1932, and before that he was in the association of
garbage collection in the city of Seattle, and they had their local
union, and in 1930, 1 remember him being on the board of this particu-
lar local union as a representative of that local union.
JSIr. Kennedy. Would they not want him in the union in which he
belonged rather than local 174?
]Mr. Brewster. He felt it would be better for him not to be in that
union so he wouldn't be in a position where he would sway the mem-
bership or anything in regards to the contract. He thought that it
would be very good, and I think so myself.
Mr. Kennedy. To be in another local ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. What does he do in that local, then ?
Mr. Brewster. He just drives a truck in the local union. Once in
awhile we have a member in a local union that will want to stay there
and probably work in another union that has been in there for a long-
period of time. That is a working relatinship with local unions.
They can do that.
Mr. Kennedy. Let me ask you this : Everyone that is on the nego-
tiating committee for the pinball association, are they all in local 174?
INIr. Brewster. No. They are in 353,
1230 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Wouldn't they be able to sway the members, too ?
Mr. Brewster. Who ?
Mr. Kennedy. The other members of the negotiating committee.
Mr. Brewster. 353 ?
Mr. Kennedy. Yes.
Mr. Brewster. Well, he wouldn't be a member attending the meet-
ings.
Mr. Kennedy. Let us go back again. You said the reason that he
was in local 174 was because he might sway the members in local 373.
Mr. Brewster. 353.
Mr. Kennedy. 353.
Mr. Brewster. That he might have a feeling that they might be in
a position and feel that because he is there in their local union, that
he might be in a position where probably his own employees wouldn't
want to talk freely and so forth in front of him.
Mr. Kennedy. What about the other members of the pinball asso-
ciation, and the negotiating committee for the pinball association?
Aren't they all in 353?
Mr. Brewster. All of them, I guess. I don't know. I am not posi-
tive about the membership.
Mr. Kennedy. Why don't you establish the same rule for them, to
go into local 174 ?
(At this point Senator Ervin withdrew from the hearing room.)
Mr. Brewster. This is no connection. I don't see the connection.
These people that are in there in 353 are wage earners. I don't know
of anyone else that is an owner that is in 353. There might possibly
be, but I don't know it. I have kept away from this in its entirety.
The Chairman. Let me ask you a question. I have never under-
stood that the management of a business becomes a member of a
union.
Mr. Brewster. If he works, that is our rule, at the craft.
The Chairman. If I own my own business, I have to become a mem-
ber of the union if I work at it ? Is that some rule you have ?
Mr. Brewster. If you own a business and become a member — ^you
have to become a. member — and work at the craft. I believe organiza-
tions take that position, that if you are working at the craft and work-
ing with the tools, that you are eligible for membei-ship.
The Chairman. In other works membership negotiates with mem-
bei-ship, is that right, or union negotiates with membership on a
contract ?
Mr. Brewster. Well, it is very infinitesimal. I don't think it
amounts to much.
The Chairman. That is what happens in this instance, obviously.
Mr. Brewster. Well, he wasn't directly in that local union. He
didn't attend meetings.
The Chairman. I am trying to find where the basis of negotiation
arises. Which interest can a man represent? If he is a member of
the union that he is negotiating with
Mr. Brewster. I am trying to explain that he is not. He isn't in
this local union. He can't vote in this local union.
The Chairman. Is that the reason he moved out of this particular
local union ?
niPROPER ACTIVITIES IN THE LABOR FIELD 1231
Mr. Brewster. Xo; that isn't the reason he moved out. He has
never been in this local union. He has been a member of 174 for 26
or 27 years.
The Chairmax. Well, it is a different local but it is a member of
the same union.
Mr. Brewster. That makes all the difference in the world.
The Chairman. The policy of the International or the policy of the
western conference applies equally to the locals; does it not? '
Mr. Brewster. Yes. But members of other local unions, cannot
go in and take any active part in negotiations or talking or discussing
wage scales in another local union.
The Chairman. I am still a little confused. I am trying to see
where the conflict of interests is, if there is any. You have a right,
and I believe that is a part of your duty, according to your prepared
statement that you read to the committee, to assist in negotiations with
locals. Is that not correct ?
Mr. Brewster. When it is necessary.
The Chairman. That is what I mean. You stand by. That is a
part of your duty.
Mr. Brewster. That is true.
The Chairman. That is, as president of the Western Conference,
Mr. Brewster. That is true.
The Chairman. You stand by. You are available at any time to
help a, local negotiate a contract?
Mr. Brewster. That is true.
The Chairman. And you do practice that when you are needed?
Mr. Brewster. That is right.
The Chairman. So in this position, you occupy a position where,
if you were needed, you could be called upon to help negotiate this
contract ; is that correct ?
yh\ Brewster. Probably on the statement, but I have never been
called on.
The Chairman. I did not say you had. I am talking about the
position you occupy and the relationship between you and Mr. Galeno.
Mr. Brewster, I could turn the local union down. I wouldn't
liave to.
The Chairman. You have the veto power?
Mr. Brewster. Yes. I can turn them down.
The Chairman. And this contract was negotiated under those
<:'ircumstances ?
Mr. Brewster. The contract was negotiated with no influence.
I didn't know anything about it. In fact, that is the first time I
had seen the contra.ct.
The Chairman. I am not saying that you knew anything about it.
I am talking about your position, the position of authority, and your
duties, and that relationship with Mr. Galeno. The relationship is
there, the authority is there, the duty is there. Whether it was
exercised or not. I am just pointing out the situation.
My statement about it is correct; is it not?
Mr. Brewster. Well, hypothetically, yes.
The Chairman, Thank you.
Proceed.
89SS0— 57— pt. 4 .9
1232 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedt. Tell me this : In your relationship with Mr. Galeno,.
have you ever borrowed any money from Mr. Galeno?
Mr. Brewster. No, not to my knowledge.
Mr. Kennedy. Have you ever received any moneys from him?
Mr. Brewster. Only in the horse business, that is all, if that is
what you call receiving.
The Chairman. We will take a. recess until 2 o'clock.
(Members present at the taking of the recess: The chairman. Sena-
tors McNamara, Mundt, and Goldwater.)
(Whereupon, at 12: 15 p. m., the committee recessed, to reconvene
at 2 p. m., the same day.)
AFTERNOON SESSION
(The hearing resumed at 2 p. m., Senator John L. ]McClellan, chair-
man, presiding.)
The Chairman. The committee will be in order.
(Present at the convening of the session were Senators McClellan,.
Ives, Mundt, and Goldwater. )
The Chairman. Mr. Brewster, you may resume the stand.
TESTIMONY OF PRANK W. BUEWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIPPIN AND JOHN K. PICKENS— Resumed
Mr. Kennedy. We were talking, Mr. Brewster, this morning at
the end of the morning session, about your relationship with Mr. Fred
Galeno.
Now, you said that you had a new stable, the Needmore Stable,
that you and he had interests in together.
Mr. Brew STER. Yes, sir.
Mr. Kennedy. That was the Needmore Stables?
Mr. Brewster. Yes, sir.
Mr, Kennedy. What was the financial arrangements for the Need-
more Stables ?
Mr. Brewster. The financial statement was the inventory taken at
the time that he went in.
Mr. Kennedy. How much did you put in and how much did he put
in, into the Needmore Stables ?
Mr. Brewster. I already had the stock and he came in in the stock
or the horses that I had. There wasn't any money he put in at that
time.
Mr. Kennedy. How much money did he put in ?
Mr. Brewster. He didn't put in any money at that time.
Mr. Kennedy. 'What did he do? Did he put anything in at that
time?
Mr. Brewster. No, sir ; he did not.
Mr. Kennedy. Did he put in some money at a later date?
Mr. Brewster. He has put in money and put up money at a later
date.
Mr. Kennedy. How much monev has he put into the Needmoi^
Stables?
Mr. Brewstee. I haven't the particulars and I don't know.
Mr. Kennedy. You have no idea of that^
IMPROPER ACTIVITIES IN THE LABOR FIELD 1233
]Mi'. Brewster. No, sir ; I do not.
Mr. Kennedy. AVas it $10,000 or $20,000 or do you have any idea?
Mr. Brewster. We had bought some horses through the bank and
we had bank notes under his name at the bank.
Mr. Kennedy. In how much ? What were the amounts ?
Mr. Brewster. I believe $15,000.
Mr. Kennedy. $15,000?
Mr. Brewster. I believe that is the amount.
Mr. Kennedy. Now, did he give you or pay you any money for the
horses that you brought into the Needmore stables ?
Mr. Brewster. No; he hasn't paid any money as of this time.
Mr. Kennedy. Was there any arrangement that he would pay you
money ?
Mr. Brewster. Yes ; there is an arrangement that he will pay me.
Mr. Kennedy. Is there a contract?
Mr. Brewster. The contract has not been drawn up to that effect
yet, just exactly how much they are worth. That is being made out
and so forth and it is based, primarily, on the amount of money that
I paid on the Breel stables.
The Chairman. How long ago was that, Mr. Brewster?
Mr. Brewster. It is about 18 months, I believe.
The Chairman. You have been operating for 18 months without
the contract having been drawn?
Mr. Brewster. We have a tentative agreement, but the contract has
not been finished; no, sir. It is basecl upon the amount of money
that we owe the Breel stables.
Mr. Kennedy. Was there anyone else in this Needmore stables other
than you and Mr. Galeno?
Mr. Brewster. And John Sweeney.
Mr. Kennedy, And Mr. John Sweeney ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Anyone else?
Mr. Brewster. That's all.
Mr. Kennedy. What did Mr. John Sweeney put into the company ?
Mr. Brewster. Nothing himself. That is all based upon the
amount of money that we paid for the horses to the Breel stables.
Mr. Kennedy. What was the arrangement with him ?
Mr. Brewster. The same arrangement.
Mr. Kennedy. Now, do you still have Needmore stables?
Mr. Brewster, Do I still have them ?
Mr. Kennedy. Yes.
Mr. Brewster. No, sir; I have sold the Needmore stables.
Mr. Kennedy. Wlien did you sell them ?
Mr. Brewster. About 5 Aveeks ago.
Mr. Kennedy. Mr. Brewster, what I do not understand is this:
You go into the partnership with two other men. You go into the
partnership some 18 months or 2 years ago, and you go in partnei-ship
during this period of time and then you sell and you still have not
made arrangements for tlie purchase of it.
Mr. Brewster. That will all come out in the finale of the entire
subject matter and I will give you a copy of the record.
The Chairman. ]\Ir. Brewster, you just a moment ago said you
were going to make a contract and that you had a tentative agree-
1234 IMPROPER ACTIVITIES IN THE LABOR FIELD
ment and now you sold the business and how can yon make a contract?
Mr. Brewster. We can still make the contract and it can still be
Tjinding-, in my opinion.
The Chairman. It is a moot question now. The business is sold.
You cannot make a contract about a business that you do not own.
'•One of the parties is dead.
Mr. Brewster. I believe it will be satisfactory to all parties.
The Chairman. And it may work out satisfactorily, but you do not
mean to sit here now and tell us that you still intend to enter into
a contract.
Mr. Brewster. I do.
The Chairman. With a dead man and about a business that you
do not own ?
Mr. Brewster. His estate will be in.
The Chairman. O. K.
Mr. Kennedy. Now, this is at the same time that Mr. Galeno is
signino- the contract for the pinball operators in Seattle.
Mr. Brewster. That had nothing to do with it.
Mr. Kennedy. Now, was Mr. Galeno receiving any monies from
the teamster organization?
Mr. Brew^ster. For what purpose?
Mr. Kennedy. For any purpose.
Mr. Brewsit.r. I think that from time to time we had him purchase
things, bills were presented and so forth, and we paid him for those
purchases. Now, I don't know what you refer to and if you call
specific things, I can answer.
Mr. Kennedy. Just leave it general and you describe why you made
these payments to Mr. Galeno.
Mr. Brewsiter. I don't know what you refer to.
Mr. Kennedy. Let me ask you again. Did the teamsters pay any
moneys to Mr. Galeno ?
Mr. Brewster. For what purpose ?
Mr. Kennedy. For anything.
Mr. Brewster. Well, I don't know what you mean by "anything."
Mr. Kennedy. You just tell me whatever purpose you have in mind.
Mr. Brewster. What purpose have you got in mind ?
The Chairman. Just a moment.
Mr. Brewster. Can I have something, Mr. Chairman ?
The Chairman. Just a moment. The question is. Has the union,
the teamsters union, the western conference, paid any money to Mr.
Galeno? You say, well, you do not know. All right. Wliat is the
purpose ? The question is, for any purpose.
Do you have any knowledge of it having paid any money to Mr.
Galeno for any purpose, for wages, for salaries, for services, for goods,
or what, any money ?
Mr. Brewster. Can I consult my attorney ?
The Chairman. You may.
(The witness consulted with his counsel.)
Mr. Brewster. We had him purchase at one time some beverages
that we used in Seattle for entertainment purposes.
The Chairman. Would you give us some idea of the quantity ?
Mr, Brewster. The quantity is — there were different amounts at
different times, and I think that one time there were around $1,600
worth.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1235
The Chairman. $1,600?
Mr. Brewster. Yes, sir, and I don't recall some of the otliers. These
were over a period and we do this before the holidays and we keep a
supply so that if anybody comes in town we send down to their room
and take care of them.
The Chairman. I understood you to say that you did it one time,
as one time when you paid the money, and now you are saying it was
repeated a number of times.
Mr. Brewster. It could be more than 1, and it could be 2 or 3.
The Chairman. You got invoices, of course, for the- goods ?
Mr. Brewster. I believe we have.
The Chairman. They are available, I am sure, for inspection ?
Mr. Brewster. I believe that they are in our offices.
The Chairman. How long has it been ?
Mr. Brewster. It has been in the period of the last, I think, 3 years;
3 to 4 years.
The Chairman. Are tliose records available ?
Mr. Brewsi'er. I think so.
The Chairjvian. They were not destroyed with the others?
Mr. Brewstcr. There hasn't been anything since 1953. That is 4
years.
Mr. Kennedy. Now, these bills were paid by the Western Confer-
ence of Teamsters ?
Mr. Brewster. They were.
Mr. Kennedy. Why was it that you went through Mr. Fred Galeno
to make these purchases ?
Mr. Brewster. Because he had a brother that ran a place in Cali-
fornia and the brands and et cetera that we wanted were not available
in the city of Seattle and we got a much better price so we had them
come up there and got them there and hauled them up.
Mr. Kennedy. Did you pay the tax in the State of Washington ?
Mr. Brewster. I don't think we did.
Mr. Kennedy. So you purchased the liquor through Mr. Fred Ga-
leno's brother, is that right, in Los Angeles ?
Mr. Brewster. In Oakland, Calif.
Mr. Kennedy. What is the name of that liquor store ?
Mr. Brewster. I believe it is the Black and White; on some occa-
sions I believe there is a check to Black and White, and then I think
that we paid him personally.
Mr. Kennedy. Now, I want to come back to that in a moment, but
in the meantime, were there any other moneys paid to Mr. Fred Galeno
by the Western Conference of Teamsters ? That is, other than these
beverages that you purchasd through his brother ?
Mr. Brewster. I used Fred Galeno, or asked him if he wouldn't go
down to make a survey of the rubbish situation in Los Angeles.
The Chairman. The what situation ?
Mr. Brewster. The rubbish, junk. At that time we paid him no
salary whatsoever and we did pay his expenses, plane, et cetera.
The Chairman. Do you have a copy of that survey or that report ?
Mr. Brewster. No, sir. It was a private survey made to me
because at that time— if j^ou want to go into that it would take quite
a while.
The Chairman. I just asked you a question. You hired him to
make a report ?
1236 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. It was a personal report is all I asked him for at
that time. Also, in San Francisco we read where the garbage that
is being liauled down there is under investigation and attack and
everything else, and we asked him previous to before the attack was
made and so forth that he go down and see what he could find out
about that particular kind of operation.
The Chairman. What is that?
Mr. Brewster. He is qualified for that work.
The Chairman. Where did you send him from ?
Mr. Brewster. Seattle, to San Francisco, and to Los Angeles at one
time — that is, that I remember, and I may have sent him more than
one time. But right at the present time, I only recall one ins-tance
and it might have been one or two times.
The Chairman. All riglit ; he made a survey.
Mr. Kennedy. You did not get any report on that ?
Mr. Brewster. I got a report.
Mr. Kennedy. No written report ?
Mr. Brewster. No written report ; no, sir.
Mr. Kennedy. Now, was it also understood that when Mr. Galeno
went down to San Francisco to make this study for you, he should
bring his wife at union expense ?
Mr. Brewster. I think that he took his wife at the union expense
because he was not charging any salary or any fee or any compensa-
tion, so I thought that it would be proper that he could take his wife
in lieu of possibly a salary.
Mr. Kennedy. Was that taken up with the policy board members
that you were going to send him down there ?
Mr. Brewster. I discussed it at different times with members of the
policy committee ; yes. I had the authority to do that without taking
it up, though.
Mr. Kennedy. That does not appear any place in the minutes of the
meetings ?
Mr. Brewster. No, sir, it does not; no, sir. I have that autliority
witliout going to the policy committee.
Mr. Kennedy. If you were misusing your authority, you could be
sending your friends all over the country, could you not, Mr. Brewster?
Mr. Brewster. But I don't.
Senator INIundt. Before we get too far away from the race track
situation, I had a note or two I took this morning, Mr. Brewster. I
believe you said that you and your partner, Mr. Newell, engaged in a
real estate transaction in Los Angeles in which you invested $11,000 in
a piece of propertv near a racetrack and 2 or 3 years later sold it for
$25,000.
Mr. Brewster. Yes, sir.
Senator Mundt. Was that a complete arm's-length transaction, and
just happened to be a lucky real estate speculation on your ])art ?
Mr. Brewster. Well, there was a tendency of property in that area
to increase in leaps and bounds. If you have ever been around that
area, it is just jungle and the arboretum at Los Angeles, the county,
was going to use that for a site. We did not desire to sell it but we
knew that if we didn't we had been offered that amount of money, they
would confiscate it anyway.
Senator Mundt. It was a negotiated sale ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1237
Mr. Brewster. Absolutely.
Senator Mundt. You mentioned the Tanforan racetrack a coiijjle of
times in jonr testimony. That set a lot of bells ringing!: in my mind
because I was a member of the connnittee when we were investigating
the Tanforan racetrack. I had no idea a Frank Brewster was involved
in it.
Mr. Brewster. And I don't recall the investigation.
Senator Mundt. I do remember Harry Vaughn and Johnny Merigoii
iind Gene Moray and some other people who were involved.
Mr. Brewster. Gene Moray ^
Senator Mundt. I think he is the president.
Mr. Brewster. I know Gene Moray.
Senator Mundt. Are you in any way connected with Tanforan
racetrack or was that just one of the places that you ran your horsas?
Mr. Brewster. That's all. I haven't any stock in any racetrack, or
no connection at all.
Senator Mundt. You could not give us any information on it, how
the Tanforan racetrack got its materials at a time when home builders
could not get them, and GI's could not get them, but the Tanforan
racetrack had all of the building materials it needed.
Mr. Brewster. I heard something about it and I thought it was all
second hand. That's not the information, but the materials.
Senator Mundt. This is not second hand.
Mr. Brewster. I meant the materials.
Senator Mundt. They were able to get some priority orders with
some nice contacts they had in Washington and build quite a racetrack.
I have seen the racetrack but I don't know whether you can shed some
light on that or not.
Mr. Brewster. I was not involved. Senator.
Senator Mundt. All right. You have a clean bill of health on that
one.
Mr. Kennedy. We have some of the tickets purchased for Mr.
Galeno, Mr. Chairman, by the Western Conference of Teamsters. This
one is purchased for Mr. Galeno on December 14, 1954, and this for
Mr. and Mrs. Galeno on June 23, 1954.
One comes from the files of the Western Conference of Teamsters
and one is for a total of $181.94, and the other for a total of $93.18.
The Chairman. Mr. Brewster, you may examine these photostatic
copies of the United Air Lines records and see if you identify them.
(The documents were handed to the witness.)
Mr. Brewster. What do you want now?
Mr. Kennedy. Just identify them. Can you identify them?
Mr. Brewster. Yes, I can identify them.
The Chairman. They may be made exhibits No. 91-A and 91-B.
(The documents referred to were marked "Exhibits Nos. 91-A and
91-B" for reference and will be found in the appendix on pp. 1445-
1446.)
Mr. Kennedy. Mr. Brewster, let me ask you this : Were there any
other payments that were made from the Western Conference of
Teamsters to Mr. Fred Galeno other than for the beverages ?
Mr. Brewster. One time he was a delegate, I think, to the conven-
tion in Los Angeles.
Mr. Kennedy. Was he actually a delegate ?
Mr. Brewster. Yes, sir.
1238 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. He was on the list of delegates?
Mr. Brewster. I think he was.
Mr. Kennedy. And he received for that how much ?
Mr. Brewster. At that time we paid all of our delegates $750 for
the week's convention — expenses, its entirety, fare, and all. I believe
that that is the amount.
Mr. Kennedy. So he received $750 for that?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Xow I want to come back to that convention in a few
minutes, but were there any other expenses or anything else that he
was paid for by the Western Conference of Teamsters ?
Mr. Brewster. I don't recall any.
Mr. Kennedy. Did he perform any other services ?
Mr. Brew^ster. I don't recall any other services at the present.
Mr. Kennedy. Is there anything that he handled for you that he
was paid out of western conference funds ?
Mr. Brewster. No.
Mr. Kennedy. Is there anything else that he performed for the
western conference that he got paid for, or by the joint councils?
Mr. Brewster. I don't recall at the present time anything.
The Chairman. The Chair presents to you two checks — photostatic
copies of checks — and asks you to identify them. I believe they appear
to bear your signature.
Mr. Kennedy. On joint council 28.
The Chairman. Yes, on joint council 28.
(The documents were handed to the witness.)
Mr. Brewster. I identify the check made out to Fred Galeno, of
July 24, 1953, for $1,225, signed by myself and Gordon Lindsay.
There is one of .January 8, 1954, $507.50, signed by myself and
Gordon Lindsay. It is drawn on joint council 28.
Mr. Kennedy. And your position in joint council 28 at that time
was what?
Mr. Brewster. I was president.
Mr. Kennedy. Would you tell the committee what those checks
were for ?
Mr. Brewster. I cannot without looking at the records and I am
sure that there were bills of some type to cover it somewhere.
Mr. Kennedy. Did Mr. Galeno ever purchase a television set for
you ?
Mr. Brewster. He purchased a television set for our building and
it is at the present time there.
Mr. Kennedy. Did he ever purchase a phonograph ?
Mr. Brewster. I don't recall a phonograph ; I can't recall one.
Mr. Kennedy. But you have no explanation of this amount?
Mr. Brewster. No, but I am positive that it wasn't for any services.
It was something that he purchased for us. He had a way and places
to get things wholesale and so forth and we dealt through him.
Mr. Kennedy. Was he purchasing thing-s for you wholesale? Other
than beverages ?
Mr. Brewster. The television, yes.
Senator Mundt. Are the books and records of that joint council
intact at this time or have they been forced out by cramped filing
room to the city dump ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1239
Mr. Brewster. I am not sure, Senator.
Senator Mundt. You do not know about that?
Mr. Brewster. I do not know.
Senator Muxdt. Are you presently an officer of that council ?
Mr. Brewster. Yes, sir, I am.
Senator Mundt. What is your position now ?
Mr. Brewster. In what way, sir?
Senator Mundt. In this connection, you said you were president at
that time.
Mr. Brewsiter. My position is still president.
Senator Mundt. You are still president?
Mr. Brewster. Yes, sir.
Senator Mundt. You should know, I would think, whether the
records are there or not. Have you had any reports ?
Mr. Brewster. It sounds like I should but I really don't know.
Senator Mundt. Who is the custodian of the records now^ Who
would know ?
Mr, Brewster. The custodian is Fred Verschueren, Jr.
Senator Mundt. I do not mean the custodian of the building. I
mean the bookkeeper.
Mr. Brewster. The bookkeeper, that's who I mean, Senator.
Senator Mundt. This is a different office from the office in which
Ann Nielson works ?
Mr. Brewster. That's right. The books are not there. There is
nothing kept in her office at all.
Mr. Kennedy. We have been through what records there are of
joint council 28 and there does not seem to be any record of any bills
that Mr. Galeno submitted for this money. Now in your books, op-
posite the $507.50 item, check No. 5335, is the word "donation." Does
that refresh vour recollection at all? Were vou giving a donation
to Mr. Galeno?
Mr. Brewster. No, sir, we were not.
Mr. Kennedy. ^Yhy would this check go to Mr. Galeno and then
be written up as a donation ?
Mr. Brewster. I cannot answer.
Mr. Kennedy. And then the $1,225 is charged to "buttons, print-
ing, and supplies."
Mr. Brewster. Well — —
Mr, Kennedy. Were you getting your buttons from him ?
Mr. Brewster. No ; I think that you have got that off the wrong
stub. I think that is highly possible.
Mr. Kennedy. Well, can you tell ns then ?
Mr. Brewster. I know we don't get any buttons and I know we get
our buttons from a button company and we pay them for those but-
tons and I don't know where that came from myself.
Mr. Kennedy. You have no explanation of the $1,200 ?
Mr. Brewster. No ; I haven't.
Mr. Kennedy. Now, could you examine this check ?
The Chairman. The Chair presents to you what appears to be a
photostatic copy of a check dated August 24, 1955, Seattle, Wash.,
signed by Fred Galeno and I wish you would examine it and identify it!
The other checks that have been referred to will be made exhibits
92-AandB.
1240 IMPROPER ACTIVITIES IN THE LABOR FIELD
(The documents referred to were marked "Exhibits Nos. 92-A and
92-B" for reference and will be found in the appendix on pp. 1447-
1448.)
(The document was handed to the witness.)
Mr. Kennedy. Can you identify that check, please ?
Mr. Brewster. The check was made out to cash and it is signed
"F. W. Brewster," on the back and that is not my signature.
Mr. Kennedy. What is the amount ?
Mr. Brewster. $1,000.
(At this point in the proceedings Senator McCarthy entered the
hearing room.)
Mr. Kennedy. It would appear that a Mr. F. W. Brewster received
the $1,000, is that right, from that check ?
Mr. Brewster. That possibly could have gone into the stable.
Mr. Kennedy. Wliat stable would that have gone into ?
Mr. Brewster. Needmore. This isn't my signature on here.
Mr. Kennedy. It is not? Do you know who wrote that ?
Mr. Brewster. I couldn't tell. I have never seen it.
Mr. Kennedy. You have no explanation of it ?
Mr. Brewster. No ; I don't know what this is at all, because it is-
made out to cash and it has a signature that is not my signature.
Mr. Kennedy. Did Mr. Verschueren ever sign your name for you?
Mr. Brewster. I don't believe he has, and I don't remember.
Mr. Kennedy. Have you given anybody authority to sign your
name?
Mr. Brewster. Just for deposit only.
Mr. Kennedy. Well, to whom did you give the authority to sigii
your name?
Mr. Brewster. I have given my secretary authority.
Mr. Kennedy. Is that written by her ?
Mr. Brewster. This isn't her signature.
Mr. Kennedy. Somebody has forged your signature then to the'
check ?
Mr. Brewster. Well, I just want to say that it is not my sigiiature?'
Mr. Kennedy. If it is not your signature and it is not written by
anybody who you authorize to sign your signature, it would appear
that somebody has forged your name ; is that right ?
Mr. Brewster. I wouldn't know what conclusion to make of it.
Mr. Kennedy. You would not ? You have nothing to add to it then ? '
Mr. Brewster. No ; I don't know what constitutes forgery.
Mr. Kennedy. Did you receive the $1,000?
Mr. Brewster. No ; not to my knowledge I didn't.
Mr. Kennedy. You would know if you received $1,000?
Mr. Brewster. Chances are, I would. I don't recall receiving any
money for this check. I don't know and you can see my signature and
look at it yourself and see for yourself that it is not my sigiiature.
Mr. Kennedy. Well, now, I have a new question, which is. Did you
receive the $1,000 or any part of that?
Mr. Brewster. I said to the best of my knowledge I have not. and
I don't remember at all of receiving any $1,000 for any purpose from
Fred Galeno other than
Mr. Kennedy. Now, this is just less than 2 years ago, and so you
would remember if you received $1,000 ; would you not, Mr. Brewster?
]\Ir. Brewster. I said that I didn't ; didn't I ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1241
Mr. IvENNEDY. If you received it ?
Mr. Brewster. If I received it, and I remembered it, I would have
told you.
Mr. Kennedy. You have uo idea as to who wrote your name here?
Mr. Brewster. I have no idea whatsoever.
Mr. Kennedy. Now, have you ever had any interest in any pinball
business?
Mr. Brewster. Not at all.
Mr. Ivennedy. Have you ever received income from any pinball
operations?
Mr. Brewster. None whatsoever.
Mr. Kennedy. What other companies or corporations or partner-
ships liave you had an intei'est in other than the Breel Stables and the
Needmore Stables?
Mr. Brewster. That is the only interest that I have had.
Senator Mundt. You mentioned another one, a filling station.
Mr. Brewster. That's true, I am sorry. I am interested in the fill-
ing station across the street.
Mr. Kennedy. How long have you had an interest in the filling
station ?
Mr. Breavster. Before the war.
Mr. Kennedy. And do you have a partner in that ?
Mr. Brewster. Yes.
Mr. Kennedy. Who is the partner ?
Mr. Brewster. Mr. Dave Beck.
Mr. Kennedy. Now, would you tell us what financial arrangements
you have with the filling station ?
Mr. Brewster. I have got a 50-50 percent, or 50 percent, partnership
with Dave Beck.
Mr. Kennedy. It is a filling station?
Mr. Brewster. I explained it the other day.
Mr. Kennedy. First describe the filling station and where it is.
Mr. Brewster. The filling station is across the street from our
building.
Mr. Kennedy. It is across the street from the Teamsters Building?
Mr. Brewster. Yes, sir.
Mr. Kennedy. You and Mr. Beck own the filling station?
Mr. Brewster. We own the property and the building on the filling
station.
Mr. I^NNEDY. Now, you have a 50-50 arrangement there ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Is there any lease arrangement ?
Mr. Breavster. There is a lease arrangement with the Standard Tire
Service.
Mr. Kennedy. What is the basis of the lease arrangement ?
Mr. Brewster. I think it is a guaranty of $175 a month and I think
it is 1% cents per gallon and I think it is 5 percent on accessories,
grease jobs, et cetei-a.
Mr. Kennedy. You get a certain jjercentage of eA^ery gallon of gas
that is sold at this filling station ?
Mr, Breavster. The regular lease that anybody has got, Ave have the
same thing. That is the way they lease all gas stations and it is no
different from any other lease.
1242 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. It is 1% cents for every gallon of gas sold, is that
right, at the gas station?
Mr. Brewster. I believe that is right. If you have the figure, I will
take your figure.
Mr. Kennedy. Seven and a half percent of the gross profits from
the sale of all tires, tubes, and accessories, petroleum products, other
than gasoline and other goods, wares, and merchandise, plus credit
given for merchandise returned and excluding script sales and moneys
collected as taxes. Does that sound familiar ?
Mr. Brewster. I thought it was 5 percent, and I guess it has been
raised to Ti/o percent.
Mr. Kennedy. And 7 percent of the gross profits from all labor and
services and a minimum of $175 a month.
Mr. Brewster. I think that is right. Is there any identification
there to the cents per gallon ?
Mr. Kennedy. Yes; 1% cents.
Mr. Brewster. I think I had it pretty close.
Mr. Kennedy. Does the Western Conference of Teamsters and local
174 and joint council 28, do they use this Standard Service gasoline,
Standard Service Tire Co. ?
Mr. Brewster. I think probably every local union in the building
uses it, including them. They use it including every other local union.
Mr. Kennedy. We have some figures here from 1950 through 1955.
The records of the Western Conference of Teamsters were not avail-
able from 1950, 1951, 1952, and 1953, and joint council 28 were not
available from 1950, 1951, but for the local 174, joint council 28, and
the Western Conference of Teamsters, for those years 1950 to 1955,
with the exceptions I have mentioned, the Standard Service Tire has
grossed from those 3 unions $164,589.76.
How much have you realized out of that ?
Mr. Brewster. The legitimate profit under the contract.
Mr. Kennedy. Could you tell me how much that is ?
Mr. Brewster. No. Maybe I could figure it out.
Mr. Kennedy. Approximately how much do you get ?
Mr. Brewster. I don't know. I say that our profit on the thing
has been over the whole picture, has been about $6,000 a year. I think
that came out with Senator Gold water when he said that during 1 of
those years, I think the profit on the station was $3,000. Was that
no correct ? It was $3,000 and something.
That is what we realized, double that, on all of the business in the
entire building.
Mr. Kennedy. Do you think it is a good idea, Mr. Brewster, for a
president of the Western Conference of Teamsters to be having an
interest in a company which does business witli the Western Con-
ference of Teamsters ?
Mr. Brewster. That type of business, I certainly cannot see any-
thing wrong in.
Mr. Kennedy. You do not see anything wrong about it and you
do not think that there is any conflict there ?
Mr. Brewster. I certainly do not.
Mr. Kennedy. What about having business with Mr. Galeno who
is signing a contract with the teamsters ? Do you think that there is
anything wrong in having a business arrangement with him ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1243
Mr. Brewstch. I do not believe that tlie business that X am in,
certainly it is entirely different, and I don't see any conflict whatsoever.
Mr. Kennedy. Can you see there might be a problem if you did
not have somebody with high princii)les who had a business arrange-
ment with a company that did business with the teamsters ?
Mr. Bkews'itk. I am very fortunate that Mr. Galeno has high
principles.
Mr. Kennedy. I am just talking about if you had an official of a
union who did not. Do you think that there is anything that is ques-
tionable about having a business deal or having a business interest in
a company that does business with the teamsters ?
Mr. BREw^s'l'ER. Until it has been discussed today, I have never
heard it discussed on the west coast in my 37 years.
Mr. Kennedy. Now, tell me, did you hear it discussed down in
Miami about 2 months ago^
Mr. Brewster. With whom?
Mr. Kennedy. With the Ethical Practices Connnittee.
Senator ^McCarthy. I do not think that your question is answered,
Bob.
Mr. Kennedy. The first question was whether you felt that there
was anything improper about that.
Mr. Brewster. I do not.
Mr. Kennedy. Xow, the second question is, on the point that j'ou
say you had not heard it discussed, did you hear it discussed in Miami
when you were down there ?
Mr. Brewster. I read about it in the papers, but I think that is
entirely different.
Mr. Kennedy. Did you read that they also outlined a code of con-
duct dealing with a conflict of interest such as this ?
Mr. Brewster. I would be willing and ready to go before that
committee and discuss the question with them.
Mr. Kennedy. But it does not appear to you to be improper at
all?
Mr. Brewster. It does not.
Mr. Kennedy. And you do not intend to break off your interest
with Mr. Galeno or with the Standard Tire Co. ?
Mr. Brewster. I don't with Standard Tire.
Mr. Kennedy. Or Mr. Galeno ?
Mr. Brewster. Or Mr. Galeno.
Mr. Kennedy. Now, going to this convention, how much money
did the western conference or what was spent for that convention in
1952 that you mentioned Mr. Fred Galeno went to where each dele-
gate received $750 ?
Mr. Brewster. How many delegates did we send, you mean ?
Mr. Kennedy. Yes.
Mr. Brewster. Gee, I certainly would be guessing and I wouldn't
know.
Mr. Kennedy. How much money did the western conference spend
at that convention where each delegate was given $750 ?
Mr. Brewster. You are talking about the moneys that the delegates
received to go to the convention ?
Mr. Kennedy. Just the $750.
1244 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Bkewster. That was the joint council and in the western
conference I don't know. I don't know what other locals paid their
delegates or anything else about it.
Mr. Kennedy. Let us take the western conference. How many
delegates did the western conference send ?
Mr. Brewster. I don't remember how many we sent there. I
haven't any idea now. That was 1952.
Mr. Kennedy. You don't remember about that ?
Mr. Brewster. No ; do you have some records ?
Mr. Kennedy. Our records show there was $80,000 for 109 dele-
gates for the western conference. Now, I notice that one of these
checks went to Mr. Dave Beck, Jr.; was Mr. Dave Beck, Jr., a
delegate?
Mr. Brewster. I believe he was a delegate to the joint council at
that time and at that time Mr. Beck was president.
Mr. Kennedy. He is not listed as a delegate and why would he
get $750?
Mr. Brewster. We did this at that convention, which we do and
it has been a practice, that if another local union has a credential that
they aie not using, we try and get that credential and they might
represent some other local union. So that they would have a voting
credential at the convention.
Mr. Kennedy. The question still remains, why did Mr. Dave Beck,
Jr., receive $750 ?
Mr. Brewster. I believe he was a delegate from some other local
union.
Mr. Kennedy. What union was he a delegate from? He does not
appear in any of our records as a delegate.
Mr. Brewster. Did you check the delegates of every local union in
the 11 western States?
Mr. Kennedy. No ; we did not.
Mr. Brewster. Well, then, you probably couldn't find it miless
you did.
Mr. Kennedy. Can you tell me what union he was a delegate from ?
Mr. Brewster. I cannot.
Mr. Kennedy. Now, Mr. Simon Wampole, who I understand is
Mr. Beck's financial adviser, also received $750. Why did he receive
$750?
]Mi\ Brewster. At that time he was working on legal work for the
Western Conference of Teamsters and the joint council.
Mr. Kennedy. He received $750 as a delegate and he was not a
delegate ?
Mr. Brewster. I am not sure that he wasn't a delegate. I think it
is possible that he could have been a delegate.
Mr. Kennedy. There is the list.
(A document was handed to the witness.)
Senator Mundt. Can a man be a delegate to a convention from a
local to which he does not belong, Mr, Brewster ?
Mr. Grietin. Mr. Chairman
Senator Mundt. My question was, Can a man be a delegate to a
convention representing a union to which he does not belong, a local
to which he does not belong ?
Mr. Brewster. That has been done. Senator, tiuie and time again.
In other words, if there are extra delegates or extra credentials and
IMPROPER ACTIVITIES IN THE LABOR FIELD 1245
some other local union wants them and so forth, you might have
maybe — you see, we go up to the majority of 500 before they can get
additional delegates, and they might have pretty close to that.
They would ask if they could get another delegate to send some
representative from that local union; and that has been the practice
ever since I can remember.
Senator Mundt. Are those outside delegates selected by the local
union or are they selected by some higher echelon within the manage-
ment ?
Mr. Brewster. Both. Sometimes they are by the local unions, and
so forth, or they are by some higher echelon who might do it. I say
now that I have got requests on my desk, I believe, in my office, of
about 10 credentials where some local union is very close and they
would like to send a delegate, and that would be one that was elected
and appointed or whatever it might be from their own local union.
But he might have a credential from another local union entirely
foreign from his own local union.
Senator Mundt. Well, I can understand perhaps how a local union
might select some good competent unionman to represent it at a con-
vention from outside its own local membership. But I am right back
where I was with you yesterday, trying to protect the democratic
rights of the individual union members when j^ou tell me that on
occasion the delegate from a local union is selected from some higher
echelon of union leadership.
I wonder if that also does not move in the direction of disenfran-
chising the dues-paying member of the local union.
Mr. Brewster. There is something there. To a degree, I think
that you are right.
Senator Mundt. To the degree it is practiced ; is that right ?
Mr. Brewster. That's right.
Senator Goldwater. May I continue on that, Mr. Brewster ? I did
not hear you. How many delegates are there to the annual conven-
tion of the Western Conference ?
Mr. Brewster. To our annual conference, we call it a conference,
instead of a convention, because that is the way we are chartered.
There are 2 from each local union, regardless of size and there are
-246 local unions, and so that is 492.
Senator Goldwater. What is the turnover in those delegates?
Mr. Brewster. Senator Goldwater, it would be pretty hard to say.
Usually their membership sends those that are actively engaged, such
as secretaries or business agents and someone who is actually in the
field, because it is more or less of outlining a program for the organi-
zation of the 11 Western States.
I don't think that the turnover is too great, anymore than the turn-
over would probably be in the representatives, the people that re]jre-
sent local unions.
Senator Goldwater. Then you get substantially the same people
as delegates year after year?
Mr. Brewster. I think the large majority, I think that is right.
There are a lot of new faces that I see from time to time and I meet
tliem and T think that there is a certain amount of turnover.
I believe that some local unions do this, Senator, and I am sure
rliev do: They take and alternate. Say a local union might have 10
1246 IMPROPER ACTIVITIES IN THE LABOR FIELD
representatives. They will alternate and they won't have the same
one there for a period of about 5 years and they take turns in sending
their paid representatives to the conference.
It isn't mandatory, but they do it.
Senator Goldwater. Are these delegates pledged to any candidates
for the top positions or are they pledged to any practices of the con-
ference ?
Mr. Brewster. By their local unions when they come ; you mean ?
Senator Goldwater. Yes.
Mr. Brewster. I couldn't answer that.
Senator Goldwater. Are they free to vote ?
Mr. Brewster. Absolutely they are free to vote.
Senator Goldwater. They do not come there pledged to you or to
any other candidate?
Mr. Brewster. No ; I don't want that kind of a representation.
Senator Goldwater. You have no control then, over these con-
ventions ?
Mr. Brewster. I do not, other than my long years of dealing with
the people themselves.
Senator Goldwater Do you get many votes against you as the
years go by ?
Mr. Brewster. It might be interesting to know that I have been
elected time and time again, and I had opposition one time and when
it was popular to get defeated, and when Roosevelt came into office.
Senator Goldwater. I did not notice that popularity growing when
he came into office.
Mr. Brewster. It was popular to be defeated.
Senator Goldwater. Not in that organization.
Mr. Brewster. And I was elected with opposition by a vote of al-
most 9 to 1.
Senator Goldwater. What is the smallest pluralitv you have ever
had?
Mr. Brewster. That is the only time I have ever had opposition.
I think that I come by it honestly, Senator. I don't think that there
is any machine. I believe this, that the work that I have done in
the fringe issues we were talking about this morning and so forth
Senator Goldwater, What would happen if somebody got up on
the floor of the conference and nominated somebody in opposition to
you?
Mr. Breavster, I wish that they would. They would have a
chance to run.
Senator Goldwater. It would be an interesting experiment,
jMr. Brewster, Yes, that has happened in the Senate.
Senator Mundt. Mr. Brewster, did I understand that you said that
it was the practice in the union to give a check of $750 to each delegate
in lieu of expenses for the time that he spent at a convention which
usually is the better part of a week ? Did I understand that correctly ?
Mr. Breavster. For his expenses, yes, and salary and travel and so
forth.
Senator Mundt. Instead of asking him to submit an itemized state-
ment and paying him $625 or $795, you have got a flat rate and you
giA^e each one $750 for a couA^ention expense ?
Mr. Breavster, That is true.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1247
Senator Mundt. When you do that, do you instruct the delegates
that they have to file that $750 with the Internal Revenue Biu-eau as
income and then file an expense account against it so that the Gov-
ernment can be assured of the fact that it has been actually expended ?
Mr. Brewster. I have instructed all delegates that they will have
to keep track of all their expenses. And that anything that they
don't
Senator ]Mundt, That does not quite answer the question. Do
you instruct them?
Mr. Brewster. I haven't done it in the way that you explained,
no. But I have told them that if there is anything that they could
not account for, that it would be income, and they would have to pay
for it. I did it in another way than you probably brought up.
Senator Mundt. But you did instruct them that they do not have
to account for it to the teamsters, and rather than go through all of
that material, you treat them all alike with that $750^
Mr. Brewster. That is right.
Senator Mundt. But they do have to keep a record of it, because
on that basis, that $750 would be treated by the tax bureau as in-
come, and against it they can charge the actual expenses that they
have.
Mr. Brewster. They have been informed of it, not exactly in that
way, but in the way that I informed them.
Mr. Kexnedy. "Would j-ou explain why $750 of union members'
dues was used to send Mr. Dave Beck, Jr., down to San Francisco,
and Mr. Simon Wampold, the financial adviser of Mr. Dave Beck?
Mr. Brewster. I think at that time Mr. Simon Wampold was work-
ing for the joint council. I was under the impression that Dave Beck,
Jr., was a delegate from some other local union. If he was not, I erred.
But at that time, I was not present, and I don't remember the trans-
action myself, that he was or was not a delegate to the international.
I wasn't on the credential committee. I haven't seen this book.
Mr. Kennedy. In connection with what Senator Mundt was ask-
ing you, did you submit a financial voucher as to how much money you
had spent at the convention ?
Mr. Brewster. No, I didn't. I do it in a different way.
Mr. Kennedy. How do you do it?
Mr. Brewster. Well, I do it in the way that I spend my money and
get money back for it. I get reimbursed for my expenses.
Mr. Kennedy. Do you ever submit any hotel bills or other vouchers
showing your expenses?
Mr. Brewster. Do I do what ?
(At this point. Senator Ives withdrew from the room.)
Mr. Kennedy. Do you ever submit any hotel bills or other vouchers
showing your expenses ?
Mr. Brewster. No, I don't.
Mr. Kennedy. Again, of course, if you had somebody in that didn't
have a high moral character, Mr. Brewster ; somebody could be really
taking double expenses and pocketing them. Do you see the difficulty
in that? You do?
For instance, did you also receive expenses from the international for
that convention that you received the $750?
Mr. Brewster. I did.
Sf)330— 57— pt. 4 10
1248 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kexnedy. How much in expenses did you receive ?
Mr. Brewster. AYait a miiuite. I made a mistake in that answer.
I don't think I did. I don't remember receiving expenses for that
particular convention.
Mr. Kexnedy. The records show tliat two people received expenses
from the international as well as from the Joint Council 28, and one
of them was Mr. Frank Brewster and the other was Mr. Dave Beck.
Mr. Brewster. May I see the check, please ?
(Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. I think, though, that proceedings in the convention
was from October 13 to 17, 1952^ and the exhibit that you gave
me was under date of November 28, and that was relative to a board
meeting. It was either prior or after. I think it was prior to the
convention.
(At this point. Senator Mundt withdrew from the hearing room.)
Mr. Kennedy. Mr. Chairman, on that, could I ask Mr. Bellino,
who has gone through these records and checked that point with the
International Brotherhood of Teamsters, to take the stand?
The Chairman. Let that check be made exhibit No. 93.
(The document referred to was marked '"Exhibit No. 93.'' for refer-
ence and will be found in the appendix on pp. 1449-1450.)
(At this point, Senator McCarthy withdrew from the hearing-
room. )
The Chairman. Mr. Bellino, will you walk around in front of the
table so we can interrogate you about it, please ?
(Members present at this pomt : The Chairman, and Senator
Goldwater. )
The Chairman. Mr. Brewster will suspend for a moment while we
interrogate Mr. Bellino. Just remain where you are, please, sir.
TESTIMONY OF CARMINE S. BELLINO— Resumed
The Chairman. Mr. Bellino, you have been previously sworn?
Mr. Bellino. Yes, sir.
The Chairman. You are a member of the stalf of this committee?
Mr. Bellino. Yes, sir.
The Chairman. All right, Mr. Counsel.
Mr. Kennedy. Can we have the voucher in front of Mr. Bellino ?
( Document handed to witness. )
Mr. Kennedy. Mr. Bellino, that is a voucher of expenses for Mr.
Frank Brewster ?
Mr. Bellino. Yes, sir.
Mr. Kennedy. On the face it states what ?
Mr, Bellino. On the face of it, it says it is in connection with
expenses for his attendance to the American Federation of Labor
convention held in Los Angeles.
jVIr. Kennedy. Did you check on that and also have conversations
with the international, individuals at the International Brotherhood
of Teamsters, to determine whether that voucher there was for the
convention that was held by the teamsters in Los Angeles?
Mr. Bellino. Yes, sir.
]Mr. Kennedy. Would you tell us what report you received ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1249
Mr. Belling. It was reported that this was an error on the part of
the secretary of Mr. Brewster in t^yping in the American Federation
of Labor convention; that actually covered their own convention in
L/OS Angeles Avhich was held in October Vd^r2. and the l)ill was paid
December 2, 1952.
Mr. Kennedy. You received that information from an official in
the teamsters that would have that ?
Mr. Belling. That was from INIr. Mullenhotz. of tlie International
Brotherhood of Teamsters ; yes, sir.
The Chairman. Are there any further questions of Mr. Bellino?
Mr. Kennedy. No.
(Members present at this point: The chairman and Senator Gold-
water.)
TESTIMONY OF FRANK W. BREWSTER. ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
The Chairman. Have you anything to say, Mr. Brewster?
Mr. Brewster. I certainly have something else to say. I think
there was an A. F. of L. convention there at that time.
The Chairman. That can be established.
Mr. Brewster. Yes. I would like to check with ^Ir. Mullenhotz
myself.
The Chairman. All right.
Mr. Brewster. Thank you.
The Chairman. Mr. Brewster, this morning in testimony regarding
the pension fund, I asked you the source of it, and the amount that was
c-allected, I believe, from the employer. If I am not mistaken, 3^011
replied that they collected 10 cents per month from each member.
^Ir. Brewster. Xo; per hour. I am sorry.
The Chairman. I think you said per month, and someone called it
to my attention that knows more about it than I do. What you collect
from them is 10 cents per hour '?
Mr. Brewster. That is right. If I said month, I certainly erred in
that statement.
The Chairman. Well, you did say month, and it occurred to me,
and I meant to interrogate you further at the time, that that was a
very small collection for a pension fund.
Mr. Brewster. It wouldn't buy much ; wotdd it ?
The Chairman. It would not buy much ; no, sir. But 10 cents per
liour
Mr. Brewster. With the exception of the trucking industry, which
is probably about 35,000 people. It is 5 cents, during the life of their
contract, per hour.
The Chairman. All right. I just wanted to get the record straight.
Mr. Brewster. Yes, sir. I am glad you corrected that.
Mr. Kennedy. Mr. Brewster, as I understand it, each union is sup-
loosed to pay for its own delegate's ; is that right ?
Mr. Brewster. Yes.
Mr. Kennedy. I see here that the Joint Council 28 was paying for a
member from Montana, Mr. Ralph LaFay — no; Ralph Benjamin,
from Montana. What wotdd be the reason for that ?
Mr. Brewster. Ralph Benjamin isn't from Montana. Ralph Benja-
min Avas our
1250 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Local 666?
Mr. Brewster. Well, the local union : I think I explained that a f e^^'
minutes ago. Ralph Benjamin was our editor of our publication, the
Washington Teamster. He wanted to be a delegate, and there was a
credential from Montana that they did not send a delegate, and he
used that credential and was sent down by the Joint Council of Team-
sters, of which he is an employee, or was an employee.
Mr. Kennedy. And Mr. Ray LaFay ?
Mr. Brewster. Ray LaFay was another one of those examples where
a local union had all of the credentials that they could use, and they
had another delegate that they wanted to send, and they used another
local union to go down. That is all in the 11 Western States.
Mr. Kennedy. When Ave were out there, Mr. Bellino tried to get the
cashbook of Joint Council 28. the convention fund, in order to study
this matter, and when he received the book, the first 63 pages had been
cut out. Do you know anything about that ?
Mr. Brewster. Yes. I think so. It was an old book. It was an-
other transaction altogether, and an old book that we picked up, cut
the pages out and started over. There wasn't anything destroyed that
I know of.
Mr. Kennedy. When did you cut them out ?
Mr. Brewster. I don't know. When we put in the new part of it.
or started putting them in.
Mr. Kennedy. They told us that it had been cut out recently.
Mr. Brewster. I never heard of such a thing. I knew there was an
old book used for that purpose, because it was just used to put it in.
1 don't know why anything was cut out.
Mr. Kennedy. Why was it cut out ?
Mr. Brewster. I don't know that it was. I didn't cut it out.
Mr. Kennedy. I thought you said you heard about it.
Mr. Brewster. I heard that there was an old book that was used,
and it would probably be natural that there was some things that
wasn't relevant to the fund itself, and they cut it out and they used it
over again.
Mr. Kennedy. How did they cut it out? Did they cut it out and
throw it away ? If they cut it out, it is gone. Why did they cut it out ?
Mr. Brewster. I don't think it referred to this fund.
Mr. Kennedy. Why would they cut it out ?
Mr. Brewster. Whv would they leave it in if it didn't refer to
the fund?
Mr. Kennedy. If it is in, why would somebody cut it out?
Mr. Brewster. I think it is natural to cut it out, if it doesn't refer
to the fund itself.
Mr. Kennedy. Do you know who cut it out?
Mr. Brewster. No, I don't. Who said it had been cut out recent-
ly ? Maybe he could tell you, or she, or whoever it was.
Mr. Kennedy. When did you hear it had been cut out? How long
ago?
Mr. Brewster. I heard when that started, Peggy Thayer asked me
if I had any objection in keeping this account in one of the old books
that they liad that they hadn't used very much of. I said I had no
objection and I thought it would be a good thing to use.
Mr. Kennedy. '\'\^en did you hear it was cut out?
IMPROPER ACTIVITIES IX THE LABOR FIELD 1251
Mr. Brewster. I never knew it was cut out.
Mr. Kennedy. You said you knew it was cut out.
Mr. Brewster. I never said that. I said if it was cut out, it was
cut out because it wasn't relevant.
Mr. Kennedy. You said it was cut out. ''I heard all about that,"
you said. When was it cut out?
Mr. Brewster. I wish you would read back to where I said that.
Mr. Kennedy. Did you ever hear it was cut out ?
Mr. Brewster. Kead where I said it was cut out and I knew it was
cut out.
Mr. Kennedy. All right. Read it.
Mr. Griffin. How about reading the last 5. 6. or T questions. That
is about where it was cut out.
The Chairman. I did not understand.
Mr. Griffin. From the time where he said it was cut out, the wit-
ness, read the rest of the questions and let us see how much repetition
we have from the counsel.
Mr. Kennedy. Why not just go back to the original questions.
(The reporter read from his notes as requested, as follows :)
Mr. Kennedy. When we were out there. Mr. Bellino tried to get the cash book
of Joint Council 28, the convention fund, in order to study l:his matter, and
when he received the book, the first 63 pages had been cut out. Do you know
anything about that?
Mr. Brewster. Yes. I think so. It was an old book. It was another trans-
action altogether, and an old book that we picked up, cut the pages out and
started over. There wasn't anything destroyed that I know of.
Mr. Kennedy. That is the answer.
Mr. Brewster. It still goes. I don't know of anything that was
■destroyed that was relevant.
Mr. Kennedy. You said, "Yes, I knew about it."
Mr. Brewster. I knew it was an old book.
Mr. Kennedy. When did you first hear that Co pages were cut out?
Mr. Brewster. I didn't know that there were 6 or 63 that were cut
■out.
Mr. Kennedy. Let me rephrase it. When did you learn that the
pages were cut out ?
Mr. Brewster. I think I explained that, and I will explain it again.
Mr. Griffin. Mr. Chairman, the witness has answered at least five
times that he didn't know when the
The Chairman. We will straighten it out very quickly. When did
you first know those pages had been cut out ?
Let us have order, please.
Mr. Brewsi'er. I did not know that they were actually cut out.
The Chairman. When did you know they were out?
Mr. Brewster. I knew this, that Peggy Thayer said that she had
a chance to use an old book, and that I had no objection to, and in my
recollection, I think she said, "There are some old pages that I will
have to take out," and that is about
The Chairman. Then you knew it at the time ?
Mr. Brewster. At that time, yes, sir.
The Chairman. All right, then. That is all we have been asking.
Mr. Brewster. That is all there is to it.
The Chairman. Go ahead.
1252 i:mproper activities in the labor field
Mr. Kexxedy. When did Peggy Thayer have that conversation
with yon?
Mr. Brewster. When this fnnd first started. I think it was 1942
or 1943.
Mr. Kennedy. 1942?
Mr. Breavster. Yes.
Mr, Kennedy. Do you mean that 63 pages were cut out in 1942?
Mr. Brewster. 63 pages — I don't know if there are 6, or 63 or 6.
Mr. Kennedy. I stand corrected. The pages that were cut out.
Mr. Brewster. Yes. I heard. She talked to me about putting
in — I remember this very distinctly — she talked to me about using
an old book.
Mr. Kennedy. Go ahead.
Mr. Brewster. And she said that she would take these pages that
were in there and cut them out and use the old book and it would
answer the purpose, because it was a fund that was coming in there,
and it would be a permanent fund and there wouldn't be much ex-
pense going out, and there would be just a record of keeping the
moneys coming in.
Mr. Kennedy. Mr. Brewster, do you mean to tell this committee
that you cannot remember what happened to $160,000, but you can
remember a conversation you had with a secretary 15 years ago?
Mr. Brewster. I remember this particular one, yes.
Mr. Kennedy. The convention fund did not start until 1946 or
1947, did it ? This book didn't start until 1946 or 1947.
Mr. Brewster. Maybe it was 1947. I said 1942. I was thinking
of the last convention.' I will tell you when it probably was, then. It
was probably in 1948. 1947 or 1948. It was after the convention.
That is when it was. It wasn't in 1942.
Mr. Kennedy. And you remember this conversation with the sec-
retary ?
Mr. Brewster. I remember that particular conversation, yes, I do.
(Members present at this point: The chairman and Senator Gold-
water.)
Mr. Kennedy. Mr. Chairman, could I just ask Mr. Bellino another
question about the 63 pages ?
The Chairman. Mr. Bellino may be asked the question.
You may remain where you are.
TESTIMONY OF CARMINE S. BELLINO— Resumed
Mr. Kennedy. Mr. Bellino, did you go to Seattle over the period
of the last couple of weeks ?
Mr. Bellino. Yes, sir.
Mr. Kennedy. Did you go into the Teamster headquarters and ask
for the Joint Council 28 convention fund book?
Mr. Bellino. Yes, sir.
Mr. Kennedy. Did they submit the book to you with the first 63
pages cut out ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Did they give an explanation to you as to why the
63 pages had l:)een cut out or when they had been cut out?
Mr. Belling. Mrs. Wise, the young "lady in charge of the records the
day I was there, stated tliat — first, before she answered, she turned
IMPROPER ACTIVITIES IN THE LABOR FIELD ] 253
AnrhffTfT' ^^F' ^^""i'^ ^^^ ^^^d' "Shall I answer his question ^"
However tliey actually tore out prior to February 1 196<) So
ttY? K "'f '• '*"'■''"? '" '^"ly 1947, to the end o/januaiT '1950
esi^h™^!;:™ r:™°t:[,r,S^et^"^' '"'''• " ^'- ^*-«'' «''^'^^'
sfir.ffro'^t H"'''''i ^ ''"!" ^"'- '' q^stion- Mr. Belliuo. Do I under-
' M^CSo" Y^li^™ *"'■" »"' ^""^ '''^ subpena'for fte'Z,rds%
. The Chairjiax. In otjier words, she had made no reference to hav
"t'aUT? ""■" "" '" '"'' "■ "' ^"™ *"™ -'^^^ this" ew're^orf wis
Mr. Bellixo. Xo, sir.
he JauSntvT"'''' ^^"^ '' ^^'' statement she made in the presence of
Mr. Belling. Yes, sir.
The CiLiiRMAx Was she under oath at that time?
Mr.. Belling. No, sir.
wat^r^^""' ^''''''* ^* ^^'' ^'''''^'- ^^^ ch'^irman and Senator Gold-
TESTIMONY OF FRANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS-Resnmed
The Chairman. Mr. Brewster, do you think you now remember the
conversation having taken place in 1948 « rememoer tHe
Mr. Brewster. I still think in 1948 there was an old book and there
r wTenr'd f'v '' t"''^'."^ '}'' ^''' ^■'''' ^^ ''■ ™s is the first time
The Chairman. I did not say so.
Mr. Brewster. Xo, but I didn't.
1i J^'f <^Hf RMAN. Xow, if it developed as a fact, if that is estab-
lishcci, that these pages were removed subsequent to the establishment
ot this committee and a subpena for those records, then your recol-
lection, you would think, is in error, about what occurred in 1948
would you not ? '
}^,^- Brewster. If you can prove that, it probably was.
1 he Chairman. Are there any further questions ?
Mr. Kennedy. I would like to ask you about another subiect,
Dimny Lee ^^ alton— who is Dimny Lee Walton ?
Mr. Brewster. She is an interior decorator.
Mr. Kennedy. Has she done some work for the Teamsters?
xMr. Brewster. Quite a bit of work.
Mr. Kennedy. Where does she operate?
Mr. Brewster. Los Angeles.
Mr. Kennedy. Los Angeles ?
Mr. Brewster. Yes, sir.
1254 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. Where does she do work for the teamsters ?
Mr. Brewster. In our building. Right now I think she — well, in
fact, I am sure now she is decorating the new building that we have-
that we just completed in Seattle. She did the old building that the
western conference office is in.
The Chairman. We will suspend with this witness for the moment.
You may remain seated, Mr. Brewster.
I think I read into the record of these proceedings on March 15 a
telegram that I addressed as chairman at that time to Mr. Dave Beck,
in which Mr. Beck was requested to furnish to this committee certain
personal financial records. There has been quite a bit of interest
manifested in that request since, and I indicated at the time that we
would expect Mr. Beck to reply by 3 o'clock today, our time. Just
hef ore 3 o'clock today the Chair received the following telegram :
The Honorable John L. MeClellan, Senate Oflace Building, Washington, D. C,
from Seattle, Wash.
On advice of counsel, I recognize the authority of your committee to require
my presence before you. This is to inform you that I will appear voluntarily
at your pleasure and will then bring with me the records covering the period ,vou
specify without prejudice to my rights under the Constitution and Bill of Rights.
(Signed) Dave Beck.
The Chair has just dispatched the following telegram to Mr. Beck:
Reurtel this date, in which you recognize the authority of this committee to
require your present before it, and also the production of your financial records
covering the period specified in my telegram to you on March 15, 1957. Accord-
ingly you are advised the committee requires you to appear before it on next
Tuesday, March 26, 1957, at 10 o'clock, room 318, Senate Office Building. Wash-
ington, D. C, and then and there produce "all of your personal financial books
and records maintained by you and by others on your behalf for the years 1949
through 1955, pertaining to any loans or advances from the International Brother-
hood of Teamsters or any unit thereof, and all your personal financial books and
records maintained by you and by others on your behalf for the years 1949
through 1955 pertaining to any financial transactions that you have had with
companies, corporations, or individuals having contracts or financial dealings
with the International Brotherhood of Teamsters or any unit thereof" as
requested in my wire to you on March 15, 1957. Please confirm by wire promptly
that you will comply.
It is signed by me as chairman of this committee.
The Chair would observe that in JVIr. Beck's telegram he concludes
by saying he will provide the records that were specified in the tele-
gram of March 15 "without prejudice to my rights under the Con-
stitution and Bill of Rights." The Chair is unable to determine from
that language whether that means the records will be made available
or only brought here to have them physically present.
I trust, however — it is my sincere hope — that that language means
that the records will be produced and made available for examination
by this committee and members of its stafi^. Only Mr. Beck can clarify
that statement. I cannot at this time.
Is there any comment ?
If not, we will proceed.
Mr. Kennedy. Mr. Brewster, I was discussing with you the trans-
actions that the teamsters have had with Dimny Lee Walton. She
is an architect ; is that right ?
Mr. Brewster. Interior decorator.
Mr. Kennedy. Interior decorator ?
Mr. Brewster. Yes, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1255
Mr. Kennedy. Does she do work in Seattle as well as Los Aiigeles ?
Mr. Brewster. Yes, she does.
Mr. Kennedy. For your headquarters ?
Mr. Brewster. For our headquarters, yes,
Mr. K ennedy. For the teamster headquarters?
Mr. Brewster. The teamster headquarters.
Mr. Kennedy. Has she done any work in your home or any of
your liomes ?
Mr. Brewster. She assisted, years ago, just when she was living
there, and worked with my wife. My wife at that time, my wife,
thought she was an interior decorator herself and she did the job.
Mr. Kennedy. How long ago was that ?
Mr. Brewster. About 1947. She lived in Seattle at that time,
Mr. Kennedy. Was tliat the last time she ever did any work for
you personally ?
Mr. Brewster. I tliink it is. I think that that is about the date.
It might have been 1948.
Mr. Kennedy. Not since 1950 ?
Mr. Brewster. I don't think so. She might have since 1952. It
might have been 1950 or 1951, possibly, when we moved. She might
have assisted and helped.
Mr. Kennedy. Has she done work there since 1951 in your home?
Mr. Brewster. No.
Mr. Kennedy. She has not ?
Mr. Brewster. I don't believe so. I think that is about right.
Mr. Kennedy. Did you pay her for the work that she did from your
own funds or did the teamsters pay her ?
Mr. Brewster. No; I paid her.
Mr. Kennedy. She also did some work for Mr. John Sweeney, did
she not?
Mr. Brewster. That is true.
Mr. Kennedy. And the Western Conference of Teamsters paid for
tlie work that she did in his home ?
Mr. Brew^ster. They paid for some of the things in his home, draper
and so forth.
Mr. Kennedy. Well, did they pay for an imported crystal chande-
lier, for $174, imported crystal fixture, a woven casement to close off
working area, for $189, curtains for the lower bath ? I notice that this
bill here on November 22, 1954, is $514. Then they carpeted for
$2,489.06. Then they put foam rubber padding in for $382. The next
bill is November 1, 1954, and was for $2,818.
The Chairman. Is all of that on Mr. Sweeney's home ?
Mr. Kennedy. That is correct. We have some more here.
The Chairman. All right. Go ahead.
Mr. Kennedy. The summary of those that I have given is carpet-
ing, $2.818 ; living room and dining room, $1,274.19 ; the master bed-
room and boy's room, $1,018.82; the guest room and kitchen, $299.72;
the master bath and recreation room, $1,378.75; the lining for the
entire job was $233.95 ; packing and shipping charges, $63.15 ; makiiig
a total of $5,847.58.
The Chairman. How was that paid?
Mr. Kennedy. The total, Mr. Chairman, ultimately, was $6,663.37.
There was some other work done, and it was all paid out of the Western
Conference of Teamsters.
1256 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Do you have the check?
Mr. Kennedy. Yes, sir.
The Chairman. Let us have the check.
Mr. Kennedy. These are the three checks that cover the total. The
first bill, Mr. Chairman, is for $514. This is the bill that goes with it,
Dimnj Lee Walton. Dimny Lee Walton calls it the Sweeney job.
The Chairman. The Chair presents to you, Mr. Brewster, what
purports to be an invoice or a bill, a statement of account entitled ''The
Sweeney Job" on Dimny Lee Walton's stationery, dated November 22,
1954, and I also present to you what purports to be a photostatic copy
of a check drawn by Western Conference of Teamsters, signed by
yourself and John J. Sweeney, to Dimny Lee Walton, dated December
9, 1954, in the amount of $514.
Will you examine these documents and see if you identify them ?
(Documents handed to witness.)
(The witness conferred with his counsel.)
Mr. Breavster. This check is made under date of December 9, 1954,
check No. 7937, Dimny Lee Walton, for $514, and it checks with the
invoice and statement presented at that time.
(At this point. Senator Gold water withdrew from the hearing
room.)
The Chairman, That may be made exhibit No. 94, A and B.
(The documents referred to were marked "Exhibits Nos. Olr-A and
94^B" for reference and will be found in the appendix on pp. 1451-
1452.)
The Chairman. Was that money paid out for personal benefits — we
will have to take a minute recess. Everyone will be at ease for 10
minutes.
(Brief recess.)
(Present at the taking of the recess: The chairman.)
( Present after the taking of the recess : The chairman and Senator
Goldwater.)
The Chairman. The committee will come to order.
I believe the witness has just examined a check and a statement.
They have been made exhibits 94-A and B.
The Chair hands to you several similar statements dated November
1, 1954, one reflecting "The Sweeney Job" in the amount of $2,818,
another one reflecting $5,847.56, showing a pavment on account of
$4,039.06, leaving a balance of $1,808.52. The statement is to Mr. F.
W. Brewster.
Another one, the Sweeney job, living room and dining room, totaling
$1,274.19; another one, the Sweeney job, master bedroom and boy's
room totaling $1,018.82, and then another one showing the master
bathroom, recreation room, lining, packing, and shipping in various
amounts. It does not show the total. That is still on the Sweeney job.
Another one on the Sweeney job, guest bedroom and kitchen in the
amount of $299.72. Another one is dated September 28, 1954, which
is a letter to Mr. Brewster, confirming the amount of $4,039.06 to
which I have previously referred.
There is also one covering the Venetian blinds, to which I have
referred, an itemized statement, and drapes, in the amount of $391.79.
Mr. Brewster, will you examine these statements to which the Chair
has just referred and see if you identify them?
(At this point, Senator McCarthy entered the hearing room.)
(Documents handed to witness.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1257
(The witness conferred with his counsel.)
Mr. Brewster. Does the Chair wish to have me read them ?
The Chairman. No, sir. Just identify them, if you will, as the
Chair has read them, and say that you recognize what they are, if they
do.
(At this point, Senator Mundt entered the hearing room.)
(The witness conferred with his counsel.)
Mr. Brewster. Mr. Chairman, I have read them.
The Chairman. Do you recognize them as statements rendered by
Dimny Lee Walton ?
]Mr. Brewster. I do.
The Chairman. For the purposes indicated (
Mr. Brewster. I do.
The Chairman. They mav be made exhibit No. 95-A, B, C, D, E,
F, G, and H.
(The documents referred to were marked '"Exhibit 95-A, 95-B,
95-C, 95-D, 95-E, 95-F, 95-G, and 95-H" for reference and will be
found in the appendix on pp. 1453-1460.)
The Chairman. The Chair now presents to you two checks, photo-
static copies of checks, one dated Septemper 30, 1954, to Dimny Lee
Walton, by the Western Conference on Teamsters, signed by you as
president, and John J. Sweeney, secretarv-treasurer, in the amount
of $4,039.06, and another check dated November 16, 1954, No. 7878,
drawn on the same account, and to the same payee in the amount of
$2,110.31, and asks you to examine these checks and see if you identify
them.
(Documents handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. Were there only the two checks, Mr. Chairman?
The Chairman. You do recognize the checks^ Do you recognize
the two checks that the Chair has just presented to you?
Mr. Brewster. I do.
The Chairman. They may be made exhibits 96-A and B.
(The documents referred to were marked ''Exhibits 96-A and 96-B
for reference and will be found in the appendix on pp. 1461-1462.)
Mr. Kennedy. Mr. Chairman, I would like to point out that those
3 checks, the one that he examined prior to the recess with those 2
checks, make a total of Dimny Lee Walton of $6,663.37, and that these
payments to Dimny Lee Walton, according to the records of the
Western Conference of Teamsters, were for work done on John J.
Sweeney's home.
The Chairman. Do you have any comment, Mr. Brewster ?
Mr. Brewster. Yes, sir.
The Chairman. All right.
Mr. Brewster. Sweeney had moved into Portland about less than
IS months, I believe, and has bought a new home, had furnished it,
put the carpeting, drapes, and he was settled in his new home, and
we hired him to come to Seattle, the western conference did. Some-
times, I believe, in the latter part of August or the first part of Sep-
tember, I believe the minutes will show that we hired him with a
provision that he would not lose any money on the home that he had
purchased by virtue of his change in location. I think the minutes
1258 IMPROPER ACTIVITIES IX THE LABOR FIELD
The Chairman. Do you know ^A-lle^e the minutes are ^
Mr. Brewster. Well, I think they are here.
The Chairmax. Do you have the minutes ?
Mr. Brewster. The transaction relative to carpeting his place and
putting in the drapes, and also that there would be no loss in pur-
chasing the house, he would not lose anything. He had to sell it
down there in a hurry.
(At this point. .Senator McCarthy withdraw from the hearing
room.)
Mr. Kenxedy. "We made a stud}-, again, of the minutes and find no
mention of it.
Mr. Brewster. I will explain the minutes. I am sure there are some
there somewhere.
The Chairman. Will you get the minutes, if they are available, if
they have not been destroyed ?
Mr. Brewster. Yes. I will get them.
The Chair3Iax. Will vou get those minutes and make them avail-
able?
Mr. Brewster. I will, yes, sir, that portion of them, I certainly will.
Mr. Kennedy. Mr. Salinger of the committee staff is here, Mr,
Chairman, and he has made a study of the minutes. He is available
to testify as to whether he has found this in the minutes.
The Chairman. Mr. Salinger, come around in front of the table.
Mr. Griffin. Mr. Chairman, to save time, can't the witness tell his
story and then
The Chairman. Let us keep the record somewhat in order. It will
not take but a moment.
(Members present at this point: The Chairman, Senators Mundt
and Goldwater.}
TESTIMONY OF PIERRE E. G. SALINGER— Resumed
The Chairman. yh\ Salinger, you have been previously sworn.
You are a member of this staff.
The question has arisen here regarding these payments to Dimny
Lee Walton in the amount of something over $6,000, and checks which
have been presented, and statements which have been presented, which
have been identified and made exhibits to the record. You have been
present during this testimony, have you ?
Mr. Salinger. Yes, sir.
The Chairman. You heard the testimony ?
Mr. Salinger. I have, sir.
The Chairman. Are you the one who examined the records to try
to determine the source and the occasion for these payments ?
Mr. Salinger. I examined what minutes were available in the
Western Conference of Teamsters, sir.
The Chairman. Among those that have been made available to you.
or that you have been able to secure, have you examined them care-
fully ?
Mr. Salinger. Yes, sir.
The Chairman. Have you found in any of those minutes any ref-
erence to these transactions that have been related here for which tlie.~e
checks are in payment ?
Mr. Salinger. I have not, sir.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1259
The Chairmax. Those records are present here. avaiLable in the
committee, those minutes?
Mr. Salinger. The minutes were gone over in the office of the West-
ern Conference of Teamsters in Seattle, sir.
The Chairman. You do not have them here ?
Mr. Salinger. Xo, sir. They are in Seattle.
The Chairman. Did you go over all of the minutes of the Western
Conference of Teamsters that were made available to you ?
Mr. Salinger. We did, sir.
The Chairman. What period did they cover, if you recall ?
]\Ir. Salinger. They went from October 1954 to the present time.
There were no minutes prior to October 1954.
The Chairman. No minutes prior to that ?
Mr. Salinger. That is right, sir.
The Chairman. Do you know where the others are ?
Mr. Salinger. I made inquiry as to where minutes might be prior
to October 1954, and I was told by one teamster official they were not
sure that they kept minutes before October 1954, and one other told
me they didn't know where they were and they were not available.
At least, I saw no minutes prior to October 1954.
The Chairman. You went there to get the minutes, get the records,
and you asked for them ?
Mr. Salinger. That is right, sir.
The Chairman. Are there any questions ?
You may stand aside.
(Members present at this point: The chairman. Senators Mundt
and Goldwater.)
TESTIMONY OF FRANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
The Chairman. Mr. Brewster, you may resume your explanation.
Mr. Brewster. W^ell, I think the minutes will show it.
Sweeney came to Seattle and was hired by the policy committee of
tlie Western Conference of Teamsters.
The Chairman. Sweeney came from where?
Mr. Brewster. From Portland.
The Chairman. What was he doing in Portland before he came up
T here ?
Mr. Brewster. Pie was an international organizer for the Interna-
tional Brotherhood of Teamsters.
The Chairmx'vn. What was he when he got to Seattle?
Mr. Brewster. He was made secretarv-trea.-^urer of the Western
Conference of Teamsters.
The Chairman. Was he elected to that position or appointed?
Mr. Brewster. He w^as appointed for the remainder of the term
that Gordon Lindsay served, and he was elected at the next conference.
The Chairman. What was his salarv at that time, as secretarv?
Mr. Brewster. $15,000.
The Chairman. What was his salary prior to that, as international
•organizer?
Mr. Brewster. It was either twelve or thirteen thousand. I am not
positive.
1260 IMPROPER ACTIVITIES IX THE LABOR FIELD
The Chairmax. Twelve or thirteen thousand?
Mr, Brewster. I know it was at least 12, and I think it was 13,
The Chairman. Then what you are trying to testify is that this
amounted to a bonus of $6,000 plus, for him to chano-e jolbs and get an
increase in salary from two to three thousand dollars a year?
Mr. Brewster. I do not.
The Chairmax. All right, what is it ?
Mr. Brewster. We are trying to make, and which we have com-
pleted by now, and his estate is in probate and as soon as it comes out
everything above that that was voted at our conference, at our policy
committee, rather, he will pay and he will not lose any money on the
purchase of liis home by virtue of having to move to Seattle. I think
that it won't be very much that the Sweeney estate will owe, but how
much I would not endeavor to state. But there is a certain investment
that he had in the home, and anyone knows when you sell a home
The Chairman. Have you got any record of it ?
Mr, Brewster, I think we have.
The Chairman. You do not think that has been destroyed ?
Mr, Brewster, I don't think so. I think it is in the minutes that
they have.
Mr. Kennedy. How did you determine how much of his bills you
were going to pay ?
Mr. Brewster. That would be determined after a complete inven-
tory was taken. In other words, his house in Oregon, we will say, was
a $20,000 house, and he lost— may I finish it?
The Chairman. All right .
Mr. Brewster. And his furnishings and everything with it, upon
moving, he lost $5,000. Then he would owe, in my opinion, $1,663.37.
Mr. Kennedy. How did you determine that when this woman came
in and started fixing up the house ?
Mr. Brewster. We had notes of Sweeney covering everything that
would happen,
Mr, Kennedy, Do you have any of those notes ?
Mr, Brewster, No, But you have, haven't you ?
Mr. Kennedy. Notes of his covering this Dimney Lee Walton*?
Mr. Brew^ster. No : notes of Sweeney's covering whatever he would
receive.
Mr. Kennedy, No. But what about this money that he received ?
Mr. Brewster. Well, the notes would cover this.
Mr. Kennedy. I haven't received any notes. We haven't got any
notes.
Mr. Brewster. Haven't you any notes of Sweeney's ?
Mr. Kennedy. Not like that, covering Dimny Lee Walton.
Mr. Brewster. No ; but you have notes.
Mr. Kennedy. Of other loans.
Mr, Brewster, Yes ; you have not«s of other loans, and that is in-
cluded in this. This transaction, in my opinion, was just the same as
anybody else, if they ask somebody to move from one place to another.
I clon't think it is expected. I know that the Pacific Fruit & Produce.
I remember several instances where people moved from one place to
the other, and if they lost money on the house that they purchased, that
was made up.
The Chairman. Let me ask you this question. Let us get something-
concrete here. He moved up there in August 1954, did he ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1261
Mr. Brewster. Either the latter part of August or the first pait of
September.
The Chairman. 1954?
Mr. Breavster. Tliat is right.
The CiiAiRMAx. When did he die ?
Mr. Brewster. He died November 2, 1956.
The Chairman. A period of 2 years time since this money was ad-
^anced, if it was advanced in the manner that you say it was and for
the purposes, a period of 2 years time that were was no accounting of
it?
Mr. Brewster. I believe that the notes covei-ed it, myself. I know
that he signed a note for $12,000. I think that would more than
cover it.
Th.e Chairman. Let me present you another check dated August
25, 1954, payable to John Sweeney, in the amount of $25,000, signed
bj you and Fred Verschueren, Jr. Will you examine that check and
see if you identify it ?
(Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. Yes, sir. That is for John Sweeney, signed by my-
self and Fred Verschueren, Jr., in the amount of $25,000. That was
for the purchase of his home, for the mortgage that he made payments
monthly on and interest.
The Chairman. Then what was the $12,000 note for ?
Mr. Brewster. To cover up any other amounts that he might owe
for stocks or anything else he bought.
The Chairman. Just a blank note to cover any transaction he might
have, is that your statement?
Mr. Brewster. That is not exactly the statement, but that would
figure about what we figured would be a good coverage.
The Chairman. Where is that note?
Mr. Brewster. I think the committee has it, haven't they ? Or the
investigator.
The Chairman. Was a note given for the $25,000 ?
Mr. Brewster. The mortgage was given on that.
The Chairman. You give a mortgage to secure a note. Was a note
given or was that taking up an old mortgage ?
Mr. Brewster. No, there wasn't any old mortgage on there. That
M'as the entire amount of the house.
The Chairman. That was the amount he was paying for the house
tliat he bought in Seattle, is that correct?
Mr. Brewster, That is correct.
The Chairman. And all that money was advanced to him by the
conference?
]SIr. Brewster. That is correct.
The Chairman. Are there any further questions ?
We will let that $25,000 check be made exhibit No. 97.
The document referred to was marked "Exhibit No. 97," for refer-
ence, and will be found in tlie appendix on p. 1463.)
Senator Mundt. You used a word that intrigued me. I think per-
haps you misspoke yourself, or if not it needs more explanation. You
said the $6,000 was to compensate Sweeney for any loss that he might
have had in stocks.
1262 IMPROPER ACTIVITIES IX THE LABOR FIELD
Stocks? I do not see why you should be covering any losses he
would have in a stock transaction.
Mr. Brewster. Well, no, I didn't mean that. That isn't it. That
was any loss that he might be in in the investments that he made in his
home.
Senator Mundt. In Portland ?
Mr. Brewster. In Portland.
Senator Mundt, You used the term "stocks or any other transac-
tion."
Mr, Brewster. That was a misstatement. I am glad you corrected
me.
The Chairman. Senator Goldwater?
Senator Goldwater. Do you recall what Mr. Sweeney sold his house
in Portland for?
Mr. Brewster. I don't know the exact amount, but I believe that
we have that on record, just exactly what he paid for it and what he
sold if for and what he had in it.
Senator Goldwater, Did he have a loss on that transaction?
Mr, Brewster. I know that he had a loss. How much, Senator, 1
wouldn't dare to say.
Senator Goldwater. Would it be $25,000 ?
Mr. Brewster. No. The whole home wasn't worth $25,000,
Senator Goldwater. You explained your action in paying for dec-
orating bills by saying that you felt that he should have that courtesy
extended to him. You went on to say. in elTect, that any losses he
sustained in selling his Portland house should be borne by the team-
sters.
Mr. Brewster. That is right.
Senator Goldwater. You just testified that you took a $25,000
mortgage on a house that he bought up there. Was that the amount
that he lost in Portland ?
Mr. Brewster. No, it wasn't. That was a different transaction al-
together, and we hold a mortgage, and he paid his payments and in-
terest on it every month.
Senator Goldwater. Did he lose as much on the Portland transac-
tion as you paid out in decorator bills in Seattle ?
Mr. Brewster. I think it is pretty close.
Senator Goldwater. Do you mean he lost around $6,000 ?
Mr. Brewster. I think it would go pretty close. Senator, to $6,000.
The Chairman. What I cannot understand is why there has never
been an accounting of this over a 2-year period of time, so you would
know and have a record of it.
Mr. Brewster. Well, I think there is a record.
The Chairman. The strange thing about this is that we get into these
things and then we find we are always going to do something about it.
It may be that we are rendering quite a service here, this committee,
to help you get your books straightened out and get these things
settled up so somebody can tell heads from tails about it.
]Mr. Brewster. That is an understatement.
The Chairman. I believe it is, too, sir.
Go ahead.
Mr. Kennedy, You were talking with Senator Mundt about stock.
Were there any stock payments or any stock purchases that were made
by the Western Conference of Teamsters for Mr. Sweeney?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1263
Mr. Brewster. Yes, there was.
Mr. Kennedy. Is that what you had in mind, to make up ?
Mr. Brewster. That is what it was, and also
Mr. Kennedy. I don't think that your answer to Senator Mundt
gave that impression.
Mr. Brewster. I think he was talking about two things, myself. I
didn't refer to the house as stock. He referred to the house.
Mr. Kennedy. You had purchased some stock ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. What kind of stock had you purchased for Mr.
Sweeney ?
Mr. Brewster. There is Campbell Soup and there is another long
J a wbreaker there. Will you read it ?
Mr. Kennedy. Quebec-Chibougunau gold stock.
Mr. Brew^ster. It is copper, isn'^t it ?
Mr. Kennedy. So you bought Campbell Soup stock ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. How much Campbell Soup stock did the Western
Conference of Teamsters purchase ?
^ Mr. Brewster. I think we purchased 1,000 shares. I am not posi-
tive; 3,9 < 5, 1 think. It is when it first went for sale on the market.
Mr. Kennedy. How much did the Western Conference of Teamsters
pay tor the Campbell Soup stock, altogether ?
Mr. Brewster. The full amount of the money ?
Mr. Kennedy. Yes.
Mr. Brewster, I know what it was as shares.
Mr. Kennedy. Would the figure of $47,000 be about right «
Mr. Brewster. I think it probably would be. That w^uld probably
be about 1,500 shares, wouldn't it ? i. j
-c^?'* "^^^ ^^^^ * ^^^^^ Campbell Soup stock was purchased for various
of tfie officers of the Western Conference of Teamsters, is that right «
Mr. Brewster. That was purchased and also bought by members
and so forth. It was one of those deals that it was on the market one
day and It was off the next, supposed to be, and they bought it and
asked other people so that we could send a check down for the full
amount, and everybody was billed double, billed to the western con-
ference and themselves. Some of them picked it up in cash and some
of them paid for it by paying interest, and the stock was left in escrow
as assurance.
d>.^nAA^^^?r^T^'' ^^® ^^^^^ ^^^ purchased on November 19, 1954,
^'r i -fiad everybody paid for the stock by the end of 1954 «
Mr. Brewster. No ; I don't think so.
Mr. Kennedy. What was tlie financial arrangement for the officials
ot the VVestern Conference of Teamsters that you were buyinir the
stock for ? •/ .7 to
Mr. Brewster. They would pay interest and $100 a month on the
stock itsdf , and all the interest on top of that at the rate of 31/2 percent
Mr Kennedy. How many of the officials of the western conference
was this for ?
(The witness conferred with his counsel.)
Mr. Brewster. It might possibly have been six, I think. That is
my guess.
Mr. Kennedy. You got some of that stock ?
89330— 57— pt. 4 11
1264 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Yes, sir.
Mr. Kennedy. And Nugent LaPoma, of Local 1^4?
Mr. Brewster. I think he did. Have you got it there ?
Mr. Kennedy. And John Sweeney got some of the stock ?
Mr. Brewster. That is true. .
Mr. Kennedy. Gordon Lindsay's wife, did she get some ot it i
Mr. Brewster. Yes ; she did.
Mr. Kennedy. George Newell, the broker?
Mr. Brewster. Yes. George Newell bought some at that time, and
sent a check immediately for that,
Mr. Kennedy. Sam Bassett, the attorney?
Mr. Brewster. Sam Bassett got some and he also paid it up, too,
immediately.
Mr. Kennedy. Fred Galeno ?
Mr Brewster. He did the same and paid it up immediately.
Mr Kennedy. This stock was purchased by the Western Conference
of Teamsters, and then the ones that were selected to get the stock they
made their payments later on to the Western Conference of Teamsters ;
is that right? -^ a
Mr. Brewster. Yes; they had the stock m escrow tor security, and
they made payments on it, and also paid interest on the money that was
paid for stock. • -rv -n 4.
Mr. Kennedy. You have a $785 payment to Francis Du Pont.
What was that for ? , ,, o o
Was that in connection with the Campbell Soup i
Mr. Brewster. 78 ,. n i -,
Mr. Kennedy. Francis I. Du Pont. It was listed on the records
as a loan. Didn't that have something to do with the stock ?
Mr. Brewster. I don't think so. I don't know who she is.
Mr. Kennedy. It might be a him.
(The witness conferred with his counsel.)
Mr. Brewster. It is a brokerage house ; is it ? , , ij.
Mr. Kennedy. Yes. Was that some stock purchased on your behalf
by the Western Conference of Teamsters?
Mr. Brewster. I don't recall it. Can I see it?
Mr. Kennedy. Well, I don't know.
Mr. Brewster. Wliat? i -•
Mr. Kennedy. I just want to find out if you have an explanation
for it" if it had something to do with the Campbell Soup.
And then the Quebec- Chibougunau gold stock, how much stock did
the western conference buv of that, in the purchase of that ?
Mr. Brewster. $25,000 or $30,000. I am guessing.
Mr. Kennedy. I think $46,000 worth.
Mr. Brewster. $46,000? ,
Mr. I^NNEDY. Who interested you m the Quebec-Chibougunau
stock ^
Mr. Brewster. A man by the name of Keenan in Los Angeles.
Mr. I^nnedy. I understand it has gone down m value about 50
percent. Do you know that ? Are you aware of that ?
Mr. Brewster. Yes; I am aware of it, and I still think it is good
Mr. Kennedy. It is listed as highly speculative.
Mr Brewster. It wasn't on the investigation. I had another
broker investigate it before we bought it. They were building a rail-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1265
road which is just about finished and as soon as they get that finished,
I think it will be up very much in excess of the original payment, I
think, of $4,66 a share.
Mr. Kennedy. Did the members of the union know that their money
had been used to purchase the Campbell Soup stock for the various
officials ?
Mr. Brewster. I don't think the membership was notified. I don't
think we sent a bulletin out to that effect.
Mr. I^NNEDY. Was the membership informed that the $46,000
worth of their money was used to purchase the Quebec- Chibougunau
gold stock ?
Mr. Brewster. The policy committee was notified.
Mr. I^NNEDT. That whole $46,000 was actually in the name of the
western conference and remained in the name of the western confer-
ence ; did it not ?
Mr. Brewster. It did.
Mr. Kennedy. That was a different arrangement than the Camp-
bell Soup stock, where it went back to the various officials.
Mr. Brewster. No ; I think the officials have some.
Mr. Kennedy. You and John Sweeney have an interest of about
$3,755 first, and then a little later, in 1956, of $2,105.
Mr. Brewster. That is right.
Mr. Kennedy. But beyond that
Mr. Brewster. That is about right.
Mr. I\JENNEDY. You Say the policy committee knew about it ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Are there any minutes in the meetings saying that
they approved of the purchase of the $46,000 worth of Quebec-Chi-
bougunau gold stock ?
Mr. Brewster. Only to the point that I think that I have the au-
thority that was given me in conference to make purchases on stock
and so forth that I felt was all right.
Mr. Kennedy. And that stock, as I say, and as I understand you
agree, has gone down to about half of that value.
Did you say who interested you in purchasing it?
Mr. Brewster. James Keenan.
Mr. Kennedy. Where is he from ?
Mr. Brewster. Los Angeles.
Mr. Kennedy. Is he in the stock-brokerage business ?
Mr. Brewster. He is.
Mr. Kennedy. Is he a stock broker ?
Mr. Brewster. He is.
Senator Mundt. Mr. Brewster, the thing that disturbs me about
all this, getting back to John C. Truckdriver — "C" standing for the
cash he pays in dues to run this whole organization — where does John
C. Truckdriver come in if part of the money he pays for dues is
used to buy stock for the individual officials at the head of the union ?
In a case like Campbell Soup, maybe you did all right, and the
stock goes up, and the stock is held in escrow, so you get your money
back, and a moderate rate of interest. Stocks sometimes go up and
sometimes go down. It seems to me it is a pretty reckless use of the
dues that these poor teamsters have to pay if part of the money that
they are assessed is used to buy stock for the officials of a union.
1266 IMPROPER ACTIVITIES IN THE LABOR FIELD
If the stock goes down, tlie treasury goes bust, and up go their
dues. Is that what happened? You have it in escrow. That is the
only security you had from Mr. Sweeney. You said you kept the
stock in escrow and he didn't get the stock until he paid for it. If the
stock goes down, what happens ?
Mr. Brewster, fiut he had money, in my opinion, and so did I have
notes, for the full amount of the stock, regardless of where it went,
up or down. It wasn't speculative, as far as the individual who had
the stock and had it in escrow, and in my opinion the notes that were
covered, and everything else, his job and everything else that went
with it, would certainly pay it.
Senator Mundt. Let's not talk about Mr. Brewster ; let's talk about
Mr. Sweeney. He was getting himself pretty badly obligated and in
debt to the teamsters. He had a $25,000 mortgage on his home, and
he had perhaps another $20,000 in a note for stock of Campbell Soup.
In his particular case, he passed away, so that he could not con-
tinue to make the payments. If the stock went uj), there was no loss.
But if the stock went down, certainly in that case it would be a direct
loss to the teamsters, would it not ?
Mr. Brewster. In Sweeney's case, he pays off 100 percent, dollar
for dollar, on this, as soon as the estate comes out of probate.
Senator Mundt. In other words, I am just wondering whether you,
as a very prominent official of a labor union, feel that it is good prac-
tice to use the dues that union members pay to support an organization
which is interested in improving their working conditions, wages and
hours, to purchase stocks and loan money to officials at lower than
bank interest rates, and take those chances which are involved in any
kind of stock market transaction.
It would seem to me you are talking about a new constitutional
convention, and a new audit system. I am wondering whether in that
new constitutional convention you should not spell out certain legiti-
mate uses for dues-paid money and certain things that should not be
done.
Mr. Brewster. Senator, we will, but I would like to say that it isn't
less than banks pay, because we have always gone, when it was made,
at least one-half of 1 percent more than you will get in a bank.
Senator Mundt. I thought you said 2i/^ percent interest.
Mr. Brewster. No; 3I/2 percent.
Senator Mundt. Three and a half?
Mr. Brewster. Yes, sir.
Senator Mundt. It isn't the business of this committee, I suppose,
other than the fact that the Federal Government does have a re-
sponsibility to the dues-paying members, and we set up under the
National Labor Relations Board certain regulations to protect labor
unions as well as members who pay the dues.
Everything is paid out in this case, but I am certain you are
realistic enough to understand it could have gone the other way, if
the stock market had gone down,
I got a letter today from a wife of one of the truckdrivers of your
union who was complaining because the dues kept going up and her
husband had to pay, a nice wifely reaction to any system of dues.
Obviously, the dues are going to continue to go up if money is dissi-
pated in unwise stock transactions.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1267
It doesn't seem to me it is quite a legitimate procedure for handling
the dues that the members pay,
Mr. Brewster. One of our members that the dues had gone up?.
Wliich local union do you refer to? I don't know of an increase
in dues.
Senator Mundt. This is over a period of 5 years she is talking
about. Have thev gone up in 5 years? I surely don't know. The
lady wrote me from Oregon. That is all I know. Her husband is a
truckdriver, and she says, "Keep after these fellows because our dues
have gone up all the time. Maybe you can do something about it."
Mr. Brewster. Like you get the same letters on taxes, "Keep after
these people; keep taxes down."
Senator Mundt. That is right. The same procedure exactly.
Mr. Brewster. I understand.
Senator Mundt. Do you think that when you have this constitu-
tional convention you might give some consideration to the ways
and means by which the dues of the union members might be legi-
timately spent and certain restrictions and restraints that woiSd
apply to labor union officials as to what they cannot do with thei
money ? Is that right ?
Mr. Brewster. I think you will see a brandnew constitution. I
will send you one.
Senator Mundt. I would be interested in reading it, because you
have me picked out as a prospective member. I am kind of interested.
Mr. Brewster. I don't want to make you too prospective, because
it looks like you might get my job.
Mr. Kennedy. Did I understand you, in answer to Senator Mundt's
question, that Mr. John Sweeney had repaid his loan?
Mr. Brewster. No ; I didn't say that.
Mr. Kennedy. What did you say?
Mr. Brev/ster. I said
Mr. Kennedy. That he has paid
Mr. Brewster. Wait a minute. I will tell you what I said. I said
it will all be paid, every nickel of it will be paid, as soon as the estate
comes out of probate.
Mr. Kennedy. Just to clarify the record, your records show that
Mr. John Sweeney owes $26,435, and that is besides the six thousand-
odd dollars that the WesteiTi Conference of Teamsters paid for work
done in his home.
Mr. Brewster. It will be paid.
Senator Mundt. What size estate, roughly, did he leave? Do you
know ?
Mr. Brewster. They took up a collection for him.
Senator Mundt. That doesn't sound like a very big estate to mo.
They took up a collection for him ?
Mr. Brewster. I know one reporter had that he was worth a million.
He wasn't worth any million.
Senator Mundt. I am just wondering by the size of his estate
whether you know what the size of his estate is sufficient to pay.
Mr. Brewster. I know that it will be paid for and also that the
widow will get some money to live on for about 10 years.
Senator Mundt. Out of his estate or out of the collection of the
truckdrivers ?
1268 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Out of the collection.
Senator Mundt. Who pays the collection ?
Mr. Brewster. Individuals, taken up at local unions.
Senator Mundt. Does my old friend, John C. Truckdriver, have to
pay that, too ?
Mr. Brewster. John C. Truckdriver was taken up at local meet-
ings and he voted on them, those that were present.
Senator Mundt. It comes out of their dues ?
Mr. Brewster. He voted to do it.
Senator Mundt. A majority of those present?
Mr. Brewster. The majority don't go to the polls sometimes. The
minority — I have seen very much of a small minority that elect Con-
gressmen and Senators. But that is no fault of the people that cer-
tainly go to the union to transact the business.
Senator Mundt. Do you have in your constitution something that
stipulates what represents a quorum at a meeting ? Let's take a hypo-
thetical case of a union of 600 members. How many members would
have to attend the meeting to have a legal meeting with a quorum that
would have the right to assess the other members for this collection for
Mr. Sweeney, for example ?
Mr. Brewster. It is very, very small. I don't think it is figured
on a percentage of the membership at all. We have tried to bring
members into the union. We have tried raffles, we have tried to raffle
oif turkeys, we have tried everything that we possible could.
We fined them, and time and time again we had them appear before
the board, and we saw the fine went through. T^-lien Taft-Hartley
went through, what could we do about fining them? They would
say, "Well, we won't pay it," so they would keep on working. A fine
did work. A fine brought people into the meetings, believe me.
Senator Mundt. You mean you would fine them if they didn't
come?
Mr. Brewster. That is right, from $1 to $2 a meeting. That
brought them in, but that has gone out the window. If you come up
with some solution that we get the membership in the meetings, I
will welcome it. I like big attendance.
Senator Mundt. You keep on increasing their dues, and they will
start coming in, I believe, eventually.
Mr. Brewster. When their wage scales are up, believe me they are
there.
Senator ]Muxdt. And I imagine if the tariff on the dues keeps going
up they will be there.
Mr. Brewster, When their contracts expire and they are negoti-
ating contracts we don't have trouble getting a majority.
Senator Mundt. Then as I understand it, the estate of Mr. Sweeney
is not sufficiently large to pay back to the teamsters what he owes, but
that the local unions have passed a resolution that they are going to
collect money from their members and turn it in to the Sweeney
estate so that they will pay this bill and also take care of the widow
of Mr. Sweeney ?
Mr. Brewster. They have already done that. In addition to that,
they have lots of individuals — all of the money, the individuals them-
selves, the members, and secretaries, business agents, contributed per-
sonally quite a considerable amount of money.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1269
The Chairman. Let me ask you one question.
Mr. Brewster, as I understand, to make up this deficiency in Mr.
Sweeney's estate, your local unions are making an assessment against
the members, is that correct ?
Mr. Brewster. There have been donations voted from unions, taken
up at their meetings, to donate money.
The Chairman. Is that voted by the rank and file ?
Mr. Brewster. Yes, sir, by the rank and file.
The Chairman. In other words, they vote to take it out of their
treasury ?
Mr. Brewster. That is true.
The Chairman. To make up the deficiency in the teamsters union
treasury that would result from losses on Mr. Sweeney's estate and
obligations ?
Mr. Brewster. No, I think the main objective was to probably see
that his widow, and so forth, won't be in want. Sweeney gave his
whole life, in my opinion, to labor. He died as a young man, and the
pace that he set — I think that labor and those people that knew him
personally realize it.
The Chairman. Let's reverse the order now. Let a man die that has
been a member of the union for 30 years, and worked hard driving
a truck, and so forth. What action do you take to take care of his
widow ?
Mr. Brewster. We have done that many, many times in our local
unions, helped those that needed some help.
The Chairman. You have a special fund for that, don't you?
Mr. Brewster. Yes, sir; we have used the special fund.
The Chairman. You collect dues for that purpose, don't you?
Mr. Brewster. Not only that, we have
The Chairman. Just a moment. You collect dues for that pur-
pose?
Mr. Brewster. Yes.
The Chairman. Do you collect dues to take care of such situations
as this ? Mr. S weenej" was a member. Doesn't he get his share of any
contribution out of those dues without raising special assessments
against different locals ?
Mr, BREw\srER. Well, I am saisfied that everyone that donated was
very pleased to do it.
The Chairman. They maybe were. I am not saying they were not.
Mr. Brewster. I think so.
The Chairman. Here is what we are confronted with : Poor busi-
ness management on the part of you and other officials handling union
funds, place in jeopardy dues that had been paid in by the membership
of the union, and thus, in order to prevent a loss to the treasury of the
western conference, these methods now are having to be pursued. That
is a correct statement, is it not ?
Mr. Brewster. I don't know whether it is not not. I couldn't agree
with it; no.
The Chairman. All right. I will not belabor that.
Mr. Kennedy. How much money have you asked them to raise, Mr.
Brewster? How much money are you trying to raise for Mr.
Sweeney ?
Mr. Brewster. How much money are we trying to raise ? We have
already raised it. It runs pretty close to $50,000, 1 think.
1270 EVIPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. Fifty thousand dollars?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Do the members understand that is is being paid for,
for instance, the carpeting of Mr. Sweeney's home, and some of these
things ?
Mr. Brewster.. It will be given to Mrs. Sweeney, and Mrs. Sweeney
will pay for any things that she owes, to pay for the mortgage, and
so forth.
Mr. Kennedy. Do the rank and file members of the union know that
the union funds were being used in 1954 to pay for the furnishings
of Mr. Sweeney's home?
Mr. Brewster. No, we didn't send a bulletin out to that effect.
Mr. Kennedy. They didn't know that ?
Mr. Brewster. We didn't send it out.
Mr. Kennedy. Mr. Chairman, I want to straighten out or clarify
the record on these expenses.
Mr. Brewster. There is a mortgage on this, if jou want it, also, on
the home. You know that, do you not?
Mr. Kennedy. Yes,
Mr. Brewster. That didn't come out. I just wanted to say it.
Mr. Kennedy. There was some discussion about the expenses out at
the convention in Los Angeles, of the teamster convention out there.
We have checked with the AFL and they state that there was no con-
vention in Los Angeles at this period of time, that their convention,
the AFL convention in 1952 was in New York City.
Your expenses that you submitted to the international, and I don't
believe that went in the record, were $501.10, and during that same
period of time, you received $750 from joint council 28.
(At this point Senator Goldwater left the hearing.)
Mr. Brewster. I did not mean just for that period of time that our
convention met. I went down there a couple of weeks ahead of time,
and I believe that is what that covers.
Mr. Kennedy. Do you have any vouchers at all for when you submit
these double expenses, expenses for the same period ?
Mr. Brewster. I don't think they are for the same period.
Mr. Kennedy. Let me phrase it again. It is expenses for the same
period of time to the Western Conference of Teamsters and to the
international.
Do you submit any vouchers ?
Mr. Brewster. That is a voucher you have there.
Mr. Kennedy. Do you show how you spent the money at all ?
Mr. Brewster. No, not each item that I spend ; no.
The Chairman. The committee will stand in recess until 10 o'clock
in the morning, and resume at that time.
(Present at time of recess: The chairman and Senator Mundt.)
(Whereupon, at 4 : 40 p. m., the select committee recessed, to recon-
vene at 10 a. m., Thursday. March 21, 1957.)
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
THURSDAY, MARCH 21, 1957
United States Senate,
Select CoMMrrTEE on Improper Activities
IN the Labor or Management Field,
Washing ion, D. C.
The select committee met at 10 a. m., pursuant to Senate Resolution
74, agreed to January 30, 1957, in the caucus room. Senate Office
Building, Senator John L. McClellan (chairman of the select com-
mittee) presiding.
Present : Senator John L. McClellan, Democrat, Arkansas ; Senator
Irving M. Ives, Republican, New York; Senator Pat McNamara,
Democrat, Michigan; Senator Karl E. Mundt, Republican, South
Dakota; Senator IBarry Goldwater, Republican, Arizona.
Also present: Robert F. Kennedy, chief counsel to the select com-
mittee; Jerome Adlerman, assistant counsel; Pierre E. G. Salinger,
investigator ; Alphonse F. Calabrese, investigator ; Ruth Young Watt,
chief clerk.
(Members present at the convening of the session: The chairman
and Senator Goldwater.)
The Chairman. The committee will be in order.
It will be recalled that yesterday there was an exchange of tele-
grams between Mr. Dave Beck and the chairman of the committee
regarding his attendance as a witness and the production of certain
records. The record of yesterday reflects the exchange of telegrams.
I have received from Mr. Beck the following wire which confirms
his understanding and his agreement to appear here next Tuesday.
I will read this wire into the record.
It is dated yesterday and was received by me this morning :
Answering your wire of this date, you are advised that I will appear before
your committee on Tuesday, March 26, with my records, under the provisions of
my previous wire to you of this date.
Again, the Chair will state that there were reservations in the wire
to which he referred. The Chair stated yesterday that he could
not clarify those, and that only Mr. Beck himself could do that. But
when he appears next Tuesday, we will undertake to ascertain just
what those reservations mean.
All right, Mr. Counsel ; you may proceed.
Mr. Kennedy. Mr. Frank Brewster.
The Chairman. Will you come forward, Mr. Brewster?
1271
1272 IMPROPER ACTIVITIES IN THE LABOR FIELD
TESTIMONY OP FRANK W. BREWSTEE, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIPPIN AND JOHN K. PICKENS— Resumed
We will proceed, Mr. Counsel.
Mr. Kennedy. Mr. Brewster, I have here a check to pay to the order
of Mr. Harry Apple, Apple, Inc., dated June 11, 1954, on the Western
Conference of Teamsters, for $3,115, signed by Frank Brewster and
Gordon Lindsay.
The Chair3ian. The clerk will present this check to the witness,
and ask him to examine it and identify it.
(Document handed to witness.)
Mr. Brewster. This is a check made out on June 11, 1954, to Harry
Apple for $3,115. I believe that is for an automobile purchased for
the western conference to be used by organizers of the western con-
ference. I liaven't the exact certificate, and I don't know what it is.
The Chairman. That check may be made exhibit No. 98.
(The document referred to was marked "Exhibit No. 98," for refer-
ence, and will be found in the appendix on p. 1464.)
Mr. IvENNEDY. Do you know for whom that automobile was pur-
chased ?
Mr. Brewster. Not unless I look at the records.
The Chairman. Do you have the records on that ? Are those rec-
ords available?
Mr. Brewster. I believe those records are available, of automobiles
and certificates of automobiles, because they are licensed and so forth.
Mr. Kennedy. Would it stipulate in those records for whom this
automobile was purchased ?
Mr. Bre^vster. I don't know whether it would be written out in
the stipulation, but I know very well that whoever is using it, we can
run it down and check on it.
Mr. I^nnedy. Could you tell me this : Would there be any protec-
tion against the use of union funds to purchase an automobile for pri-
vate use, for instance ?
Mr. Brewster. I don't believe we would do that.
Mr. Kennedy. Do you know Mr. Terry McNulty?
Mr. Brewster. Yes, sir.
Mr. Kennedy. We have traced this automobile and found out that
it ended up with Mr. Terry McNulty's girl friend.
Mr. Brewster. I don't believe that, and I would have to look at
the record for that. I know that we never bought Terry McNulty's
girl friend an automobile.
Mr. Kennedy. Do you know Miss Mary James ?
]Mr. Brewster. Yes, I know her.
Mr. Kennedy. Do you know she is Terry McNulty's girl friend ?
Mr. Brewster. I don't know that. I have seen them together and
I guess so.
Mr. Kennedy. JNIr. Chairman, W'C have a witness here that can
testify on the details of the purchase of this car and trace it through
to Terry McNulty's girl friend. Miss Mary James.
The Chairman. Let the witness come around.
Mr. Gkiffin. Mr. Chairman, I would like for the counsel to go
into a little more of the background of Mr. Salinger. I know that
he was a staff member, but, so the record will be clear, I know nothing
IISIPROPER ACTIVITIES IN THE LABOR FIELD 1273
about him. We would just like to know what his background is, and
not going back too far.
The Chair^ian. "We will be vei\v glad to do that for the information
of counsel. However, the committee takes full responsibility for the
stati' that it emploj's. If we did not think he was competent, we
would not have him.
Mr. Griffin. I am sure he is competent, Mr. Chairman. It is just
a matter of information for myself.
The Chairman. We are not carrying any political baggage on this
committee staff.
Mr. Kennedy,
TESTIMONY OF PIERRE E. G. SALINGER— Resumed
The Chairman. Mr. Salinger, for the benefit of counsel and the
witness, will you give a little more of your background of experience
and training?
Mr. Salinger. Yes, sir. I started to work for the San Francisco
Chronicle in 1942.
The Chairman. The San Francisco Chronicle ?
Mr. Salinger. Yes, sir. I was employed by the San Francisco
Chronicle for a period of 13 years. That is with time out for war
service. I served in the United States Navy and was a conunanding
officer of a submarine chaser. In January of 1955 I became a west-
coast editor for Colliers magazine, and I was associated with that
magazine in that capacity for a year and a half and then was trans-
ferred to New York as a contributing editor of Collier's magazine.
For 7 weeks prior to coming to work for this committee, I worked for
Time, Inc.
The Chairman. During that time, did you have any assignments
with respect to labor activities ?
]Mr. Salinger. I did, sir.
The Chairman. What was the nature of that assignment?
Mr. Salinger. In my capacity as contributing editor of Collier's, I
was assigned to do a nationwide story on activities of the teamsters'
union, and worked on this story for a period of 4I/2 montlis.
The Chairman. That was at the conclusion of your services there ?
Mr. Salinger. That is correct, sir.
The Chairman. You have been engaged in actively inquiring into
these matters for a period of 41^ months before you came with this
committee ?
Mr. Salinger. That is correct, sir. ^
The Chairman. All right; Mr. Counsel, proceed.
Mr. Kennedy. Now, Mr. Salinger, one of your duties since you
have come with this committee is to trace some of the expenses of the
fmids of the Western Conference of Teamsters?
Mr. Salinger. That is correct, sir.
Mr. Kennedy. Now, in particular, you have attempted to trace
the payment of $3,115 for an automobile from Mr. Apple ?
Mr. Salinger. That is correct.
Mr. Kennedy. Could you tell the committee what you found in your
investigation, and from the investigation of those who worked under
1274 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Salinger. That is right. First of all, in conjunction with the
United States General Accounting Office in Los Angeles, we secured
from Harry Apple, Inc., the papers relating to the transaction, the
sale of an automobile to Mary James, Route 1, Box 333, Bothell,
Wash. Now, this jacket of information from Harry Apple, Inc.,
shows that a check ui the amount of $3,115, written on the Seattle First
National Bank, was received by that company on June 17, 1954, in pay-
ment of this automobile.
The automobile was registered in the name of Mary James, Route
1, Bothell, Wash., who listed her occupation as a housewife, and
she said she was planning to use the car for pleasure. There is a
notation in here, a notation from Harry Apple, Inc., to the State
department of motor vehicles, which bears this notation :
Terry McNulty was in an accident June 10, 1954, and was unable to make the
trip to Los Angeles from Seattle to pick up the car he purchased for his daughter,
Mary James.
The Chairman. For his daughter, Mary James ?
And Maiy James came in for the car with a letter from her father, asking us
to make out bill of sale and trip permit in her name.
Mr. Salinger. Yes.
Now, I have subsequently interviewed Miss Mary James by tele-
phone, and ascertained that she is not the daughter of Terry McNulty.
Mr. Kennedy. Did she say she had been a longtime friend of Mr.
Terry McNulty?
Mr. Salinger. She did.
Mr. I^NNEDY. When you interviewed her on March 20, you in-
terviewed her by telephone, did you ?
Mr. Salinger. I did, sir.
Mr. KJENNEDT. Did you tell her at that time that you were having
a stenographer on the telephone ?
Mr. Salinger. I did, sir.
Mr. IvENNEDT. Do you have a transcript of that telephone conversa-
tion?
Mr. S.VLINGER. I do.
Mr, Kennedy. Mr. Chairman, there is a transcript.
The Chairman. You have it before you ?
Mr. Kennedy. I do, sir.
The Chairman. All right; you follow as I read it, and correxit me if
the Chair misreads it.
Mr. Salinger. Hello; is this Miss James?
Miss James. Yes.
Question. I am with the Senate Select Committee on Labor, in Washington,
D. C. Before I talk to you, I have a girl on the line making notes. You were
interviewed by a representative of the GAO last night?
Answer. Yes.
Question. Relative to a car you received as a present from Terry McNulty?
Answer. That's right.
Question. Can you tell me when you got that car?
Answer. In June.
Question. June of 1954?
Answer. June of 1954.
Question. Did you go to Los Angeles to pick up the car?
Answer. Yes.
Question. Where did you pick up?
Answer. Harry Apple.
Question. Did Mr. McNulty tell you to pick it up. Miss James?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1275
Answer. Yes.
Question. What did he tell you about the car?
Answer. Well, that the car was down there.
Question. Was it a present from Mr. McNulty?
Answer. That's right.
Question. Did he give any reason for giving you this present?
Answer. No.
Question. Then you went to Los Angeles and you went to the Harry Apple Co.?
Answer. That's right.
Question. Did you give any money for this car?
Answer. No.
Question. Did Mr. McNulty tell you who paid for the car?
Answer. He paid for the car.
Question. Did you have a letter which said you were Mr. McNulty's daughter?
Answer. No ; I did not.
Question. Do you know the existence of such a letter?
Answer. No ; I don't.
Question. You are not his daughter?
Answer. No.
Question. Are you a friend of his?
Answer. Yes.
Question. Are you employed?
Answer. Not right now.
Question. Were you employed at that time?
Answer. No ; I don't think I was.
Question. Were you ever employed by the teamsters?
Answer. No
Question. How long have you known Mr. McNulty?
Answer. Over 20 years.
Question. He has been a friend over that period of time?
Answer. That's right.
Question. He came and said he was going to give you a car?
Answer. That's right.
Question. Do you remember the conversation? Did he come up and say he
wanted to give you a car?
Answer. (Indistinct.)
Question. He just said he wanted to give it to you?
Answer. (Indistinct.)
Question. Has he used the car?
Answer. He may have used it ; yes.
Question. Was the car registered in your name?
Answer. Yes ; it was.
Question. It was always registered in your name?
Answer. Yes ; it was.
Question. Did you eventually sell the car?
Answer. Yes ; I did.
Question. Do you remember when? Would it have been sometime last year?
Answer. In 1956.
Question. Do you remember what month?
Answer. January, I think.
Question. Did you turn it in on a new car.?
Answer. Yes.
Question. Did you pay for this new car?
Answer. Yes.
Question. Do you remember the value of the turn in?
Answer. No ; I don't.
Question. Is there anything else about this transaction which I should know
about?
Answer. No ; he told me he paid for the car.
Question. You had no reason to believe he had not paid for the car?
Answer. No ; I knew he did.
Question. As far as you know he paid for the car?
Answer. Yes; he did.
Have I read it correctly, Mr. Witness ?
Mr. Salinger. You have, sir.
1276 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Now, since that time you have talked to Miss Mary
James again, and also tried to get hold of Mr. Terry McNulty,
have you not ?
Mr. Salinger. Yes, sir.
Mr. Kennedy. And you made arrangements for Mr. Terry McNulty
to be interviewed ?
Mr. Salinger. I did, sir.
Mr. Kennedy. Now, has Miss Mary James changed her story some-
what from what she told you originally in this interview?
Mr. Salinger. She has, sir.
Mr. Kennedy. What does she say now ?
Mr. Salinger. I interviewed Miss James on the telephone yesterday
afternoon again, and at that time she told me that she had withdrawn
$1,300 from 2 bank accounts and given it in cash to Mr. McNulty to
help him pay for the car, and she produced the bank accounts, $1,300
and $500, a total of $1,800 and she told me that she had produced her
bank accounts and she did turn those bank accounts over to our in-
vestigator in Seattle who examined them and found that such with-
drawals had been made from her account in June of 1954.
Mr. Kennedy. And then she said she turned this money over to
Mr. Terry McNulty?
Mr. Salinger. In cash.
Mr. Kennedy. Now, was Mr. Terry McNulty interviewed then ?
Mr. Salinger. He was, sir.
Mr. Kennedy. What did he say, as his explanation ?
Mr. Salinger. He said that Miss James had given him the money,
and that he had made up the difference in the price of the car, between
$1,800 and the $3,115, and that he had turned over this entire amount
in cash to Mr. Gordon Lindsay who was then secretary-treasurer of
the Western Conference of Teamsters.
He said he heard from Mr. Lindsay that Mr. Matulla, in Los An-
geles, who is an official of the teamsters, could get him a good deal on a
car there.
Mr. Kennedy. Did you then find out what had happened to Mr.
Gordon Lindsay ?
Mr. Salinger. He is deceased.
Mr. Kennedy. He is deceased ?
Mr. Salinger. Yes, sir.
Mr. Kennedy. Mr. Chairman, I would like to ask Mr. Bellino, who
has made a study of the records, several questions on this matter.
The Chairman. Are there any further questions of this witness ?
Mr. Kennedy. We might have some further questions.
TESTIMONY OF CARMINE S. BELLINO— Resumed
The Chairman. You have been previously sworn?
Mr. Bellino. Yes, sir.
Mr. Kennedy. You have examined the transaction for the with-
drawal of this $3,115, Mr. Bellino?
Mr. Bellino. Yes, sir.
Mr. Kj;nnedy. You have examined the books of the western con-
ference ; is that right ?
Mr. Bellino. Yes, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1277
Mr, Kennedy. Now, this $3,100, roughly, was withdrawn and given
to the Apple Co. ?
Mr. Belling. Yes, sir, and it was charged to "Cars and transpor-
tation expense."
Mr. Kennedy. Now, is there any item on the books or in the records
of the Western Conference of Teamsters that indicates that this money
was repaid to the Western Conference of Teamsters?
Mr. Belling. There is no record of any receipt on the records of the
Western Conference of Teamsters during that period of time of that
nature.
The Chairman. Are there any questions?
All right, Mr. Brewster, you have heard the testimony. Do you
have any explanation of it?
TESTIMONY OF FKANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
Mr. Brewster. I do not. The transaction was made with Gordon
Lindsay, and I certainly do not know anything about it. This is cer-
tainly all news to me.
The Chairman. That is a pretty loose business transaction, is it
not, with union money ?
Mr. Brewster. Well, I can't help but think that someplace there,
there is some record of it, if tliat happened with Gordon Lindsay, be-
cause I felt that he was a man of high integrity, and I can't understand
it myself.
The Chairman. All right; proceed.
Mr. Kennedy. Tell me this : Would he do something like this with-
out your knowledge, Mr. Brewster ?
Mr. Brewster. I don't know what you mean by "something like
this." Would somebody make a transaction — is that what you mean ?
Mr. Kennedy. Such as this transaction that has been described.
Would he do this without your knowledge ?
Mr. Brewster. He could have; yes.
Mr. Kennedy. And purchase a car or make arrangements for the
purchase of a car with western conference funds for Terry McNulty's
girl friend, without your knowledge ?
Mr. Brewster. Well, if he was repaid, he probably would.
Mr. Kennedy. Now, the records show that he was not repaid, or
the Western Conference of Teamsters was not repaid.
Mr. Brewster. I would like to be able to have the records examined
by a disinterested party to find out if that is absolutely true, myself.
The Chairman. Well, Mr. Brewster, you signed the check, did you
not?
Mr. Brewster. I signed checks in blank.
The Chairman. That is a bad practice, too, is it not ?
Mr. Brewster. I know it is, and I believe I explained that I am
going to try and change that system of signing checks in blank. I am
not signing them in blank now.
The Chairman. All right. That is one improvement that we can
note.
Proceed.
1278 IMPEOPER ACTIVITIES IN THE LABOR FIELD
Senator McNamara. Are you goin^ to start another line of ques-
tioning ? I would like to ask some questions at this point.
I would like to ask the witness this question : You have indicated
in your testimony that you have approximately 246 locals in the west-
ern conference. About how many members does that represent?
Mr. Brewster. Approximately 375,000.
Senator McNamara. 375,000 members?
Mr. Brewster. Yes, sir.
Senator McNamara. Wliat is the per capita tax paid per member
to the Western Conference of Teamsters ?
Mr. Brewster. Twenty cents.
Senator McNamara. Twenty cents per month, or per quarter?
Mr. Brewster. Per month.
Senator McNamara. Twenty cents per month?
Mr. Brewster. Yes.
Senator McNamara. That would be a total, then of $75,000 a
month ?
Mr. Brewster. That is about right.
Senator McNamara. How many paid employees, including the of-
ficers, do you have in the western conference ?
Mr. Brewster. I am just guessing, and I don't know exactly, but
there is in excess of 20. It is probably about 25.
Senator McNamara. About 25 ?
Mr. Brewster. Yes, sir.
Senator McNamara. With a payroll of about how much per
month ? Do you have an idea ?
Mr. Brewster. It will probably average around $800 or $900 a
month.
Senator McNamara. For 25 employees?
Mr. Brewster. For each employee, and I am talking about the aver-
age.
Senator McNamara. Of course, this line of questioning was for the
purpose of trying to establish how so much money as you have given
testimony for was available for these various things. I think with
375,000 members, it makes a little more sense.
You have indicated in your testimony $100,000 for stocks, $100,000
for political contributions, $80,000 for 1952 convention expense,
$35,000 invested in apartment houses and such, or an apartment house,
and many miscellaneous things such as the car and other things.
You have car expense for all of these 26 employees, I suppose ?
Mr. Brewster. We do; yes, sir.
Senator McNamara. So it winds up with a staggering amount. I
I am surprised that it is 20 cents per member, because ordinarily for
State bodies or district bodies such as this, 20 cents is rather a high
per capita tax. But for the service that you are performing, I suppose
with 25 employees, it kind of adds up, and it has to be in that neigh-
borhood, t
I was trying to make some sense out of these tremendous sums that
we have uncovered here by way of these activities.
The Chairman. I believe. Senator, according to the information
that you have elicited from the witness, granting that the employees
receive a salary of an average of $900 per month, 25 employees, the
salaries on that basis, if that is the average, would be $22,000 per
LVIPROPER ACTIVITIES IN THE LABOR FIELD 1279
month, or $264,000 for a year, which would mean salaries out of
$900,000 a year per capita tax collected.
I believe that is an accurate calculation.
Senator McNamara. You do not have any other income except
from this 20 cents per capita, as far as the western conference is con-
cerned? You do not get money from any other source?
Mr. Brewster. No; it is just per capita tax.
Senator McNamara. All of this is done on per capita tax?
Mr. Brewster. That is right, voted at the conference by the dele-
gates and officers.
Senator McNamara. You have indicated previously that voluntary
funds donated by members go into separate funds, and they do not
go through the western conference. That is funds for political activi-
ties?
Mr. Brewster. That is right.
Senator McNamara. This is all out of dues per capita money that
comes from dues money?
Mr. Brewster. That is right.
Senator McNamara. Thank you, Mr. Chairman.
The Chairman. Let me ask Mr. Bellino a question.
TESTIMONY OF CARMINE S. BELLINO— Resumed
The Chairman. Mr. Bellino, have you the records showing the sal-
aries paid by the western conference for 1 year ?
Mr. Belling. Yes, sir. We have them for several years, but I have
added quickly just 1 year ; that is the year 1955.
The Chairman. For 1955 ?
Mr. Bellino. Yes, sir.
The Chairman. ^Yliat salaries total were paid by the western con-
ference in 1955 ?
Mr. Bellino. $133,652.
The Chairman. $133,652?
Mr. Bellino. Yes, sir.
The Chairman. Well, then, the average salary, then, is only about
half of $900 per month. At $900 per month the total would be
$264,000 in salaries per annum, and according to the actual records
of the western conference they only paid $133,000 in salaries.
Mr. Bellino. Yes, the largest salary was to Mr. Brewster for $26,-
500, and tlien Mr. Sweeney, $17,225.
The Chairman. All right.
Senator Goldwater. Mr. Brewster, how many years have you been
collecting this 20-cent tax ?
TESTIMONY OF FRANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
Mr. Brewster. I am not quite sure, but I think it is about 1953. It
was lower than that, and it was increased in 1953.
Senator Goldwater. You have had surpluses consistently in your
treasury throughout the years, have you not ?
Mr. Brewster. Yes, we have.
89330 — 57^pt. 4 12
1280 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Goldwater. Wliat are the assets of the western conference
now, the total assets?
Mr. Brewster. I do not know, Eoughly speaking, I would say
they were close to $1 million.
Senator Goldwater. Close to $1 million, and they are not higher
than that?
Mr. Brewster. I don't think so. I think around that.
Senator Goldwater. Well, since 1952, that is 4 years, and you had
a surplus even accepting the chairman's figures of salaries and adding
to the normal expenses, I would say you would have a surplus in the
neighborhood of $300,000 to $400,000 a year.
Mr. Brewster. That isn't the only expense, Senator.
Senator Goldwater. I know, but I am adding up the other expenses
that you have.
Mr. Brbw^ster. The other expenses that we give to local unions for
organizing and so forth. I think if you make a thorough check of it,
you will find that we spent for organizational purposes some money.
Where we have right -to- work laws and so forth, we spend money for
that purpose.
Senator Goldwater. l\liat portion of the 20 cents is used to operate
the union, to cover all of the expenses?
Mr. Brewster. I have never figured it. I don't know.
Senator Goldwater. You only have assets of $1 million out of this
sum?
Mr. Brewster. I think roughly speaking that is about it.
The Chairman. According to your financial report of December
31, 1955, you show total assets of the western conference of $1,069,474.
That is about correct, is it not ?
Mr. Brewster. Yes, sir ; and I didn't miss it far.
TESTIMONY OF PIERRE E. G. SALINGER— Resumed
Mr. Kenxedy. ]Mr. Salinger, in the interview with Mr. Teriy
McXulty, was he also asked about the trips that he made down to the
El Ran cho Motel?
Mr. Salinger. He was, sir.
Mr. Kennedy. Now, according to Mr. Brewster's testimony the
other day on pages 2366 and 2367, there was a discussion about the fact
that Mr.'^ Terry McNulty would stay at the El Rancho Motel because
it was
there.
Mr. Salinger. That is right.
Mr. Kennedy. Do you remember that ?
Mr. Salinger. Yes, sir.
Mr. Kennedy. Was Mr. Terry McNulty asked whether he did any
organizational work when he was in California?
Mr. Salinger. He was, sir, and he has prepared an affidavit which
covers that point. I have received a telegram from Seattle, Wash.,
informing me what that section will say when the affidavit reaches us,
and it is on its way to us now.
The Chairman. What do you have? The Chair did not quite
understand you.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1281
Mr. Salixgek. I have a telef»rain from the United States General
Accoimtino; Office in Seattle ^ivin<^ me a transcript of the affidavits of
Terry McNnlty which are on the way to us now, notarized and signed.
The Chairmax. It may be read for the purpose of a basis of ques-
tioning Mr. Brewster, but I will not consider it as evidence. It is
just as a basis for questioning. When the affidavit arrives, the affi-
davit, after examination by the Chair and other members of the com-
mittee, may be ordered inserted in the record, but for the present, what
you shall read tliere shall just be a basis of information, and be infor-
mation upon which to base questions.
Mr. Griffix', Mr. Chairman, I think it would be well to know
whether Mr. Salinger has the entire affidavit, or whether he is just
going to read something out of context.
I remember the other day that we were going to get an affidavit from
Mr. Bassett, and I haven't heard any more about it.
The Chairmax'. From whom?
Mr. Griffix. Mr. Bassett. That w\as the Portland incident.
The Chairmax. Has that affidavit arrived?
Mr. Kexxedy. No : and I believe I was mistaken. I thought he had
filed an affidavit, but I think the statement that I made as to the state-
ment that he had said was correct, and we can get the affidavit. I
haven't heard that he has changed it at all.
Mr. Griffin. I just hope Mr. Salinger is not mistaken again.
The Chairman. Well, the Chair has said that it may be read for
information for a basis of questioning, and not as evidence. The affi-
davit, when it is received, will be examined by the Chair and members
of the committee, and if found proper, it will be ordered made a part
of the record.
Mr. Kexx^edy. Could I ask, was there any statement that I made
about what Mr. Bassett had said that was incorrect ?
Mr. Griffix'. No. As I recall, you just said that you understood
that an affidavit had been prepared and would be furnished later.
Mr. Kennedy. But was there anything I said about what was con-
tained in the affidavit, or the statement of Mr. Bassett, that was incor-
rect?
Mr. Griffin. Actually, I don't recall, and I wouldn't say you did
because I don't know. But I am just doing this out of an abundance
of caution, Mr. Chairman.
The Chairmax^ Yes, sir. All right. The Chair has, I think, ruled
properly that it may be stated as information for a basis of questioning,
and not as evidence at this time.
Proceed.
Mr. Salinger (reading) :
I have never engaged in any activity as an organizer or in any otlier capafity
for the teamsters union in California except to attend two conferences in Los
Angeles as a delegate, one in I9.")2 and the other about 2 years ago. I have made
quite a few trips to drive a truck hauling horses to various racetracks in
California for Xeedmore Stables and Breel Stables.
I do not remember the dates of any trips, but I recall they were always near the
beginning or the end of the racing season. At various times I hauled horses for
Needmore Stables or Breel Stables to racetracks at Santa Anita, Bav Meadows,
Golden Gate Fields, Tanforan, and Hollywood Park, all in California.
The Chairman. Now, Mr. Brewster, let the Chair ask you this
question : If Mr. McNulty submits a sworn statement to that effect.
1282 IMPROPER ACTIVITIES EST THE LABOR FIELD
and an affidavit with that language in it, and that statement in it,
would you say that his statement is incorrect ?
TESTIMONY OF FRANK W. BEEWSTEE, ACCOMPANIED BY HIS
COUNSEL, JEEEY N. GEIFFIN AND JOHN K. PICKENS— Eesumed
Mr. Brewster. I have given him from time to time instructions to
check certain trucks on his trips. Now, if he gave that affidavit and
he didn't do these things, why I would say his affidavit would be
correct.
The Chairman. Don't you check up on these things ? Do you hire
people and see that they do their work ?
Mr. Brewster. Well, checking and to keep checking on these peo-
ple to see that they do their work
The Chairman. Yes, where you personally hire them and give them
instructions ?
Mr. Brewster. Well, I personally hire quite a few, and I don't have
them make out a slip of what they do or anything like that. Prob-
ably I should. I probably will go into that to see that they are
checked.
The Chairman. It would be very helpful to us now, and probably
to you.
Mr. Brewster. The next time I am called in here I will have all of
the data that you want, I'll assure you.
The Chairman. Thank you. Proceed.
Mr. Kennedy. Do you have another part?
TESTIMONY OF PIEREE E. G. SALINGEE— Eesumed
Mr. Salinger.
Frank Brewster or John J. Sweeney would always give me money for my
expenses either before or after the trip. These payments to me were always in
cash, except for possibly one or two checks. If I received any checks, I do not
positively remember them or their identity.
Mr. Kennedy. Would you give the telegram to Mr. Griffin, please?
(A telegram was handed to Mr. Griffin.)
Mr. Kennedy. Mr. Chairman, was there any question on the tele-
gram ?
Mr. Brewster. I have no questions.
Mr. Kennedy. We have some documents that we mentioned the
other day from the Standard Service Tire Co. that I said we would
be able to get hold of regarding the truck, and the horse van, putting
the wheels on, and dismounting the wheels on the horse van for
$62.32. It was paid by the Western Conference of Teamsters.
Here are other bills that came out of the Western Conference of
Teamsters that mention about the horse truck.
The Chairman. The witness may examine these two photostatic
documents and state whether those expenses incurred there were for
your personal business, the horseracing business, or if it was for the
teamsters.
(The documents were handed to the witness.)
Mr. Brewster. I don't recall these bills.
The Chairman. The bill was rendered to the Western Conference
of Teamsters, was it not ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1283
Mr. Brewster. Yes, and it says, "care of Frank Brewster."
The Chairman. "Care of Frank Brewster" ?
Mr. Brewster. Yes.
The Chairman. Who paid that bill, the teamsters, the Western
Conference of Teamsters ?
Mr. Brewster. I don't know.
The Chairman. How do you know again, how you are going to
find out how much you owe the teamsters for personal bills paid
for you ?
Mr. Brewster. I think I possibly can, and this other one, I notice,
the other is just a notation. The other isn't a check or anything.
The Chairman. Maybe this will help you some. Here is another
bill on which it shows that the bill was paid by the Western Con-
ference of Teamsters.
That document that you have just identified, those two may be
made exhibit No. 99-A and 99-B.
(The documents referred to were marked "Exhibit No. 99-A and
99-B" for reference, and will be found in the appendix on pp. 1465-
1466.)
The Chairman. The Chair presents to you another statement, an
itemized statement, made out to the Western Conference of Teamsters
by the Standard Service Tire Co., Inc., dated October 31, 1954. I
will ask you to look at October 25, 1954, invoice item No. 70,557, in the
amount of $62.32. I ask joii if that is not the same item that the
bills before you now represent.
(Documents handed to witness.)
(The witness conferred with his counsel.)
The Chairman. And I will ask you if it was not paid by the West-
ern Conference of Teamsters when it paid the rest of the bill sub-
mitted to it.
(The witness conferred with his counsel.)
Mr. Brewster. It looks like the same, Mr. Chairman.
The Chairman. All right.
That may be made exhibit No. 100.
(The document referred to was marked "Exhibit No. 100," for ref-
erence, and will be found in the appendix on pp. 1467-1672.)
The Chairman. That bill was paid by the Western Conference
of Teamsters, was it not?
Mr. Brewsi-er. It looks like it was.
The Chairman. Here is a check, I believe, which might help you.
Will you examine this check, dated November 15, 1954; check No.
8711, by the Western Conference of Teamsters, will you examine that,
please, and identify it.
(Document handed to witness.)
(The witness conferred with his counsel.)
The Chairman. The other bill has been made exhibit No. 100. The
check being identified will be made exhibit No. 101.
(The document referred to was marked "Exhibit No. 101," for ref-
erence and will be found in appendix on p. 1473.)
Mr. Brewster. It corresponds.
The Chairman. So it does appear from the record that these bills
for your personal services were Deing rendered to the western con-
ference and being paid out of the funds of the Western Conference of
Teamsters, does it not?
1284 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. The records show that, Mr. Chairman.
The Chairman. Yes. Thank you.
Mr. Kennedy. Mr. Chairman, could we have the records that we
talked about regarding Apple Co., the purchase of the automobile,
made a part of the record ?
The Chairman. They were made a part, I believe, as we went along.
Mr. Kennedy. Just the check. How about these other records ?
The Chairman. Let me ask the witness for clarification.
The records you read from with respect to the automobile transac-
tion were Terry McNulty and Mary James — what auto company ?
Mr. Salinger. Harry Apple, Inc.
The Chairman. Harry Apple, Inc. Wliat records were you read-
ing from ?
Mr. Salinger. I was reading from the actual records of Harry
Apple, Inc., which were provided to us.
The Chairman. In other words, you got those records from Harry
Apple, Inc.?
Mr. Salinger. That is correct, sir.
The Chairman. It is their records or their copy of their records ?
Mr. Salinger. These are the original records.
The Chairman. That file of records may be exhibit No. 102'.
(The documents referred to were marked "Exhibit Xo. 102," for
reference and will be found in the appendix on p. 1474.)
Mr. Kennedy. Mr. Terry McNulty was the gentleman who on oc-
casion drove Mr. Brewster's horse van ?
Mr. Salinger. Yes, sir.
Mr. Kennedy. Mr. Chairman, also on matters that were brought up
yesterday regarding the sale of John J. Sweeney's home, and the work
that was done by Dimny Lee Walton in his new home in Seattle,
the question was raised by Mr. Brewster that possibly Mr, Sweeney
had lost money on the sale of his home in Portland, and this was to
compensate him for that.
We have some information on that which I would like to read into
the record.
The Chairman, mat is it?
Mr. Kennedy. This is a memorandum. We had our investigator
check on that in Portland, Oreg., on the purchase of the home in
Portland and then the sale of the home in Portland. We have the
information that he has uncovered.
The Chairman. You may read it not as evidence but for the purpose
of forming a basis for further questioning of the witness.
Mr. Kennedy. Deed Book No. 1597, page 310, Multnomah County
Court House, Portland, shows that John J. Sweeney and Anna M.
Sweeney purchased a house on April 20, 1953, including a lot, at 3935
Southeast Henrv Street, Portland, from a contractor at the price
of $19,500, $6,000 cash and $13,500 mortgage.
Deed Book 1G99, page 384, Multnomah County Court House, reflects
that John J. Sweeney and Anna M. sold the property by deed on
December 22. 1954. The price of the sale was $6,500 cash and assump-
tion of the balance of the mortgage, $12,737.05,' or a total of $19,237.
The person who bought the home is Norman O. and Dorothy M.
Nielson, who, according to the Portland city directory, is State com-
missioner of labor in Oregon.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1285
Mr. Sweeney lived in the house for, I believe, about a year and a half
or 14 months, and what it cost him was approximately $265, Mr.
Chairman.
The Chairmax. The Chair was engaged for a moment.
Mr. Counsel, according to this statement, the information you have,
this information is not evidence now but according to the information
we have at present, after living in the house — how long?
Mr. Kennedy. April 1953 to December 1954.
Mr. Chairman. From April 1953 to December 1954
Mr. Kennedy. It is about 20 months.
The Chairman. Mr. Sweeney took a loss of only $235.
Mr. Brewster, j'our testimony yesterday was an explanation of the
purchase of some $6,600 worth of personal property, furnishings,
work on Mr. Sweeney's home in Seattle — your explanation was that
tlie teamsters' conference was making these payments and advances
with the idea of making up the difference in any loss that Mr. Sweeney
might sustain in the sale of his home and moving from Portland, I
believe, to Seattle.
Mr. Brewster. Yes, that is right.
The Chairman. If the information this committee has is correct,
would you want to change your explanation?
Mr. Brewster. I do not want to change by explanation, because
I don't think the committee has gone far enough. Anyone that knows
that buys a new house with just a lot of sand and gravel around the
outside, there is a big job to put in lawns, shrubs, and so forth.
The Chairman. You think there may have been other expenses?
Mr. Brewster. In furnishing wall to wall carpet, drapes, et cetera,
and also I believe that there was other rooms that were furnished and
completed. It was explained to me that the house wasn't quite fin-
ished. I don't know the exact amount, but that isn't a complete picture
of the sale.
The Chairman. The Chair has said that this would not be received
as evidence, but as a basis for further interrogation of 3^011.
Mr. Brewster. I am glad to get that information, but I think we
have it.
The Chairman. All right.
Mr. Kennedy. Just on that, do you ha.ve the bills that he furnished
to show what the wall to wall carpeting cost down there?
Mr. Brewster. I haven't them myself, but I believe that they are
in the office there somewhere.
Mr. Kennedy. Do you have the dpcumentation ?
Mr. Brewster. I am not sure. I haven't the documentation.
Mr. Kennedy. Have you ever seen the documentation?
yir. Brewster. No, I haven't seen the documentation.
Mr. Kennedy. "Who would have it ?
]Mr. Brewster. Probablv Mrs. Sweeney would have it and she would
probably have it in our office, or it would probably be presented to us
somewhere. The bookkeeper might have it or something like that.
I am not positive whether he has or not. But I know this, that what-
ever information there is, we will have all of that before we straighten
up the account.
Mr. Kennedy. As I understood the record yesterday, you gave or
allowed Mr. Sweeney to charge these expenses to the Western Con-
1286 IMPROPER ACTIVITIES IN THE LABOR FIELD
f erence of Teamsters on his new house because of the charges on his old
house or what he lost on his old house. Therefore, you must have had
some records as to what the losses were. I am trying to find out where
that documentation is on those losses.
Mr. Brewsiter. That figure was going to be straightened up at the
time they moved in and their house was finished.
Mr. Kennedy. That is how long ago ? A little over 2 years ago ?
Mr. Brewster. No, it isn't.
Mr. Brewster. Well, he transferred in 1954.
Mr. Brewster. Well, yes, I guess it is.
Mr. Kennedy. Almost 3 years ago. Do you have that straightened
out yet ?
Mr. Brewster. No, sir.
Mr. Kennedy. And you have no documentation on it?
Mr. Brewster. I do not know. I don't keep those books myself. I
am not the bookkeeper.
Mr. Kennedy. It was your explanation, Mr. Brewster, not mine.
Mr. Brewster. Yes, I know it was mine, but mine is a verbal ex-
planation I got from somebody else.
Mr. Kennedy. Who did you get it from ?
Mr. Brewster. I got it from John Sweeney while he was living.
Mr. Kennedy. Who produced the documentation so that you went
ahead and allowed this $6,000 to be paid ?
Mr. Brewster. This was not something that we paid for exactly the
difference. The difference was going to be made up. If there was
more money there, we had a mortgage on the place that he bought in
Seattle, a direct mortgage. It looks like it was just putting up money
and we didn't have anything to show for it.
Wait a minute. I said yesterday, and I repeat it today, or at least
I think I said this, that any difference between the $6,600 and what
he lost and what was put into the house in Portland would be taken
out of the estate as soon as it was out of probate.
Mr. Kennedy. "Why was not this listed in the books in that manner,
Mr. Brewster, as a loan, for instance, to Mr. Sweeney ?
Mr. Brewster. Well, I considered that there was ample coverage for
the amount.
Mr. Kennedy. Only you and Mr. Sweeney would know about it.
Anybody looking at the books would never know about it.
Mr. Brewster. Well, I am not so sure about that.
The policy committee, I know, knew it.
Mr. Kennedy. There is nothing in the minutes to show that anyone
knew about it.
Mr. Brewster. Well, I haven't had a chance to look over the
minutes, but I think I can get an affidavit from every member of the
policy committee that it was discussed and action was taken.
Mr. Kennedy. I am sure you probably could.
Mr. Brewster. What was that?
Mr. Kennedy. I would like to go on, Mr. Brewster, and ask you
about the matter that you were mentioning to Senator Goldwater.
Again, without questioning the right of the teamsters or any labor
organization or any organization to fight legislation which they feel
is unfair, on the question of this right-to-work bill, what was the
amount of money that the teamsters spent on the right-to-work bill
in Washington ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1287
(The witness conferred with his counsel.)
Mr. Brewster. Where?
Mr. Kennedy. In Washington, in the State of Washington.
Mr. Brewster. I haven't all of the figures compiled yet.
Mr. Kennedy. Approximately how much was spent?
Mr. Brewster. Probably half a million.
Mr. Kennedy. About $500,000 ?
Mr. Brewsi-er. I would say roughly.
Mr. Kennedy. Was this an organization that you people, the team-
sters, established on this right-to-work bill? Did you establish an
organization to try to defeat the right-to-work bill ?
Mr. Brewster. Yes, we did.
Mr. Kennedy. Did you encourage others to donate, encourage other
labor unions to join with you in defeating the right-to-work bill?
Mr. Brewster. Outside of our own group ?
Mr. Kennedy. Yes.
Mr. Brewster. No, sir.
Mr. Kennedy. Could you tell the committee why that was, why you
wanted to handle it yourselves ?
Mr. Brewstfjr. Because we felt that anybody that did anything,
any other labor organization, would do it in their own manner, and
whatever they desired to do they had the perfect right to do it. This
was one issue that I don't think that duplication hurt anything. In
other words, if they got signboards, billboards, publicity in the paper,
ads, et cetera, we couldn't see any reason that we should probably
get into a position where we would either have anything to do with
what any other organization did. That was their own private
business.
Mr. Kennedy, When other labor organizations, for instance, at-
tempted to donate money to your organization that you had set up to
defeat the right-to-work, did you send that money back?
Mr. Brewster. They never sent any.
Mr. Kennedy. They never sent any ? No one ever sent any ?
Mr. Brewster. I have no recollection, and I don't believe it ever
happened. It was our policy that that campaign, as far as we were
concerned, was put on by ourselves, and we did not solicit or did not
accept contributions from any other labor organizations.
Mr. Kennedy. Did you explain to your policy committee and others
that the reason you did not want any other help from any other labor
organizations was that you wanted the teamsters to get full credit for
it in the State of Washington ?
Mr. Brewster. No. I wanted the worker to get full credit for it.
Mr. Kennedy. That is what I would think. But did you ever ex-
plain that you wanted the teamsters to get credit ?
Mr. Brewster. I don't go around and take credit for anything. I
don't go aromid and brag about anything that was done. The credit
don't make any difference. The job that was to be done was our para-
mount issue.
Mr. Kennedy. Did you ever say to any of these people that you did
not want any help from any other labor organizations ?
Mr. Brewster. I never said anything to anybody at all.
Ml". Kennedy. Did you ever give instructions to send checks back
to other labor organizations that tried to help ?
1288 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. I don't know whether there were any checks sent.
How can I say that I gave orders to send them back ? Have you got
records that any checks were sent ?
Mr. Kennedy. Mr. Chairman, we have a witness who can give us
some information.
Mr. Sylvester, are you here ?
Mr. Sylvester?
Mr. Sylvester is missing.
The Chairman. All right, proceed.
Senator Goldwater. Mr. Brewster, do you recall if your organi-
zation was active in the field of anti-right-to-work in Montana a few
years ago ?
Mr. Brewster. Yes, I think we were active in there.
Senator Goldwater. How much did you spend over there ? Do you
know?
Mr. Brewster. I don't know. I haven't any idea. It wasn't very
much, I don't think.
Senator Goldwater. Were you in the State of Nevada this last
year?
Mr. Brewster. Yes, we were.
Senator Goldwater. Do you remember how much you spent down
there?
Mr. Brewster, I don't know mitil I look at the record, but I think it
is probably about $40,000.
Senator Goldwater. About $40,000 ?
Mr. Brewster. Yes, sir.
Senator Goldwater. When you were deciding on what candidates
to support at the Federal level with the voluntary money that was
used for that purpose, or other sums or funds, was their stand first
known on 14 (b) of the Taft-Hartley before those donations were
made ?
Mr. Brewster. We didn't make donations to Federal officers.
Senator Goldwater. The Western Conference did not?
Mr. Brewster. No, sir.
Senator Goldwater. Just to governors and State officials?
Mr. Brewster. Just on the State level. I think if they have the
minutes here, it will show that I even made that as a talk in the
policy committee and before it, that we did not and would not con-
tribute, and we told every local union not to contribute to Federal
candidates.
Senator Goldwater. In your educational efforts, when you went
out to educate the people on behalf of a candidate for Federal office
at any level, was their position known on the repeal of 14 (b) of
the Taft-Hartley before you made that educational effort ?
Mr. Brewster. Well, we didn't — the only educational effort that
we made was made in the way of our publications and we probably
put pamphlets out to that effect, to tell our members the record of
individuals running, yes.
Senator Goldwater. Let me ask it another way. Would you at-
tempt to educate the people on behalf of the candidate who was for
the retention of 14 (b) ?
Mr. Brewster. Well, I never took that into consideration. Senator
Goldwater, too much, the retention or the rejection. I know that we
IMPROPER ACTIVITIES IN THE LABOR FIELD 12S9
have Taft-Hartley, and we do the best we can with what we have got.
Senator Goldwater. You did not determine, then, before making
any gesture toward a candidate, how he stood on the repeal of 14 (b) ?
Mr. Brewster. No, I don't believe I ever discussed it.
Senator Goldwater. Did your Conference, or those on it?
Mr. Brewster. I don't remember them discussing the bill.
Senator McNamara. Mr. Chairman?
The Chairman. Senator McNamara.
Senator McNamara. Before the counsel continues, I have before
me a photostatic copy of the return of the Western Conference of
Teamsters, indicating a return on Form 990 as required by the In-
ternal Revenue Service for tax exempt organizations. I want to state
that it was made out by Mr. John Sweeney, who is now deceased.
In reply to the questions that I asked you regarding the income of
your organization, you showed it in round numbers, a justification for
an income of around $900,000 a year. On line two of this form, you
indicate — I say you, and I mean your organization — that from dues,
assessments, and so forth, from affiliated organizations, your income
was $988,204.07, which is about in line with the answer you gave me.
However, on line 3, you show an income of $502,815.60 in addition
to what the 20 cents per capita would bring you. This is more than
a half million dollars. Have you any way to account for that ad-
ditional amount, which would amount to 10 cents per member, really ?
Mr. Brewster. Would that be strike benefits or pensions?
Senator McNamara. I do not know. It is listed as contributions.
Mr. Brewster. I think it is strike benefits, Senator, because we
have a fund that we pay 25 cents into a strike fund.
What year was that?
Senator McNamara. 1955.
Mr. Brewster. 1955. That was just a portion of 1955, and I think
that that is what it would be.
Senator McNamara. No, this is the complete year of 1955.
Mr. Brewsit:r. What I mean by that is that it just started in a
portion of the year. It wasn't the full year. It started in the latter
part.
Senator McNamara. So in addition to the 20 cents per month per
member from the affiliated organizations, you say that you have fur-
ther income, but you previously answered to me that you had no
further income. Now we are changing it and it is 25 cents per month
per member ^
Mr. Brewster. That is right, and that is earmarked that that is
for strike benefits only.
Senator McNamara. That, of course, is in addition to the 20 cents.
That makes 45 cents per member.
Mr. Brewster. That is true. I didn't try and evade the question,
but I felt that it was a different operation, that it was absolutely
earmarked, kept into a separate fund, and can only be used for strike
benefits.
Senator McNamara. There is no indication here that it was used
for strike benefits on this form. There is no mention made of ex-
penses, including strike benefits, so it would appear
Mr. Brewster. We haven't had any strikes during that period.
1290 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McNamara. There is a breakdown of all these expenditures
and strike benefits do not show in it, so it would appear that your
first answer was correct, according to this return, and that the
strike benefit fund, this 25 cents for strike benefits, I guess you would
call it, would be in a separate fund and not included in this return.
Mr. Brewster. Yes, sir.
Senator McNamara. I think your first answer would be justified
from the figures that are before me. But it still does not account
for this half million dollars in the nature of gifts, grants, and so forth.
I was trying to figure what it was.
Mi\ Brewster. I will have to check with the auditing department,
the bookkeeping department, to figure that out. I didn't make out
the report. It is foreign to me, and I would have to check with the
people that made it out. That wasn't made out either by John
Sweeney. He just signed it.
Senator McNamara. It would appear that the strike fund is not
part of this. How" is the strike fund administered ?
Mr. Brewster. It is administered by the full executive board or
the full policy committee of the Wesern Conference of Teamsters.
Any time that strike sanction is granted, it calls for a detailed report
of what the strike is for, et cetera, and then under a certain amount,
that can be done by the policy committee. Over a certain amount, it
has to be done by calling a meeting of all secretaries in the 11 Western
States to approve it.
I am not positive about the figures of what limits the amount that
the policy committee can approve or what the entire membership can,
but there is, I believe, the best protection that anybody could get over
it, and we do that for one big reason, to keep strikes down as much
as possible. We are not trying to have them.
Senator McNajiara. The strike fund that you know about now,
do you know how much money you have in the strike fund ? It would
run a million dollars a year, apparently.
Mr. Brewster. Well, roughly speaking, about a million dollars
a year. I believe now there is in excess of a million and a half.
Senator McNamara. You have been paying out of that fund?
Mr. Brewster. Not very much. They are just small. I think the
largest strike we had, I think there were 80 some people involved
and it lasted about 3 weeks. We matched the amount of money paid
by the International per week, which is $15. We pay $15 out of the
strike.
Senator McNamara. And this fund was created in 1955, somewhere
in mid-year or something like that ?
Mr. Brewster. Yes, sir.
Senator McNamara. It has been in operation for 2i^ years, in round
numbers ?
No, it would be a little more than a year and a half.
Mr. Brewster. Yes, sir, that is correct.
Senator McNamara. Well, those figures seem to check pretty well
as far as your memory is concerned.
Mr. Brewster. Thank you.
Senator McNamara. But it still does not account for this i/^ million
dollars.
Mr. Brewster. Well, I will check on that.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1291
The Chairman. May the Chair ask one question ?
Is this $11/2 million included in the assets that you testified to
awhile a^o ?
Mr. Brewster. No, we didn't include it in assets.
The Chairman. Well, they are assets. They are collected and
they are in trust.
Mr. Brewster. Well, I am sorry that I didn't say they were assets,
but I don't think they are assets, because they are earmarked for one
certain purpose, and they are not a part of the entire setup. I cannot
think that it is in any way.
The Chairman. What you mean is that you have approximately a
million and a half dollars in the strike fund.
Mr. Brewster. That is true.
The Chairman. And you also have in addition to that assets of
around a million dollars.
Mr. Brewster. That is correct. I was not trying to hide anything,
Mr. Senator.
The Chairman. I was trying to get the record clear.
Senator Mundt ?
Senator Mundt. Mr. Brewster, I wonder if you can break down
for the committee as I think we should have it in our records, the
monthly dues of the teamster union member in your area. I think
you said it was $5, plus how much per month?
Mr. Brewster. No, there is not any plus.
Senator Mundt. $5 even per month ?
Mr. Brewster. I think the average is around $5 per month, and I
think that prevails in the 11 Western States. I think some of them
might have 6 or 7 and some of them probably 4 or something. But
I believe that the average would be about $5 a month.
Senator Mundt. Will you break down that portion of the dues
which leaves the local union? You must be conversant with that.
You have 20 cents, as I understand it, for what you call a tax. That
tax runs the western conference.
Mr. Brew^ster. Yes, sir.
Senator Mundt. And you have 25 cents for strike benefits ?
Mr. Brewster. Yes, sir.
Senator Mundt. There must be something taken out for the
International.
Mr. Brewster. Forty cents for the International. Now, I couldn't
attempt to break down what they pay to central labor councils, State
federation of labor, and several othei; building trades, and so forth.
Some of them belong to it and some of them don't. I don't know
Senator Mundt. You have a Joint Council of Teamsters, too.
Mr. Brewster. Joint council.
Senator Mundt. What do they pay ?
Mr. Brewster. In different areas they pay different amounts. In
Seattle, Joint Council 28, I think that those that use the accounting
office, I think, pay 35 cents per capita tax, but that includes the ac-
coimting part of it and the clerical help for their books, and the
others pay 20 cents.
Senator Mundt. Don't you know how much they take out alto-
gether? Let us just take a local. Let us take this local that has been
getting into a lot of trouble down there. The one which Mr. Hildreth
is now runnino; in Portland.
1292 IMPROPER ACTIVITIES IN THE LABOR FIELD
Maybe that would not be good to take because that is in trusteeship.
Let us take local 174. That is not in a trusteeship ; it is ?
Mr, Brewster. No, sir. •■,•>.
Senator Mundt. Let us take local 174. You are familiar with that
because you used to be, or I guess you are still, an official.
Mr. Brewster. Yes, sir. -,-,■,.. ^
Senator Mundt. Let us break that down. I would like to get a
Mr Brewster. I would have to look at the records, Senator, and
any statement I would make would just be a guess. I haven't looked
at that part of it for years. I know that we belong to the Central
Labor Council, the building trades. ^ i , .• j •
Senator Mundt. Will you do this, will you find out sometime during
the noon hour? There must be someone in that local who can give
you that information. -,, o ..i j jir
Mr. Brewster. I will try to make a call to Seattle and see if I can
get the per capita tax that they pay. ^ . , , • -, j. • o
Senator Mundt. Would union 174 be fairly typical of unions?
There are some figures that are bigger and some that are smaller,
butisthistheaverage, or not? , 1 1 i, .r.
Mr Brewster. Well, I would say that it would probably be on the
average. That information we can get for you. That is not hard
to get all over the 11 Western States , ^ , r^ rr. , -, - r
Senator Mundt. I am still thinking of John C. Truckdriver.^ I
am trying to relate all of this to him. I tliink that it is mf oraiation
that is pirtinent. If you will get that during the limch hour and
give it to us, that will be helpful.
Mr Beewster. I will make an attempt and see if I can get the
party' on the phone. You see, there is 3 hours difference there
Senator Munot. But a good truckdnver should be up by 9 o clock.
He should be up and wide awake. ^ i u„
Mr. Brewster. A good truckdnver would have a day s work by
Senator Mundt. I know one fellow that got up at 4:30 in the
morning. .
Mr. Brewstee. I was a truckdnver. . -i j! j
Senator Goldwater. Mr. Brewster, to get back to the strike fund,
do vou know if any of that fund is ever used to pay layoffs whether it
is used for funds that would be called off-time or part-time or layott
funds, out-of-work funds? 4. ^j. xt,^
Mr. Brewster. Oh, no. It might possibly be used by a vote of the
entire representative group of the secretaries for lockouts, i
wouldn't say that we would exclude that. But not out of work, no,
sir.
Senator Goldwater. Do you know if any of your locals or councils
maintain such funds?
Mr. Brewster. Out-of-work funds?
Senator Goldwater. Yes. .
(At this point, the chairman withdrew from the hearing room.)
Mr Brewster. I think local unions in certain places— I don t be-
lieve unemployment. I don't believe that they do. They have sick
dues and so forth, and when they are sick they pay them, but I don t
know of any local union that pays men when they are unemployed.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1293
Senator Goldwater. Do you have any knowledge of this practice
existing in any of your locals or councils, where around election time
men are told to quit their jobs and go to work for the election, and
get paid out of union fimds ?
Mr. Brewster. No; I don't know of anything like that.
Senator Goldwater. The reason I asked that is because the Gore
committee which was studying this problem found that practice to be
in existence in one of our States. I wondered if it carried over into
the teamsters.
Mr. Brewster. I do not believe it does. Senator Goldwater. I do
not know of any time that that has been done. It hasn't been done
to my knowledge, and I don't believe we do that.
Senator Goldwater. I have just one more question. This relates
back to what we were talking about before. I was using the term
"14 (b) of the Taft-Hartley. "Are you acquainted with that section?
Mr. Brewster. I have read it ; yes, sir.
Senator Goldwater. You know that that is the section that gives
the States the right to pass right-to- work laws.
Mr. Brewster. Yes ; I know it does.
Senator Goldwater. So you know what you were answering me
when you answered me.
Mr. Brewster. I don't think you would feel that I would be very
kindly toward it, Senator.
Senator Goldwater. No ; I did not expect you to smile about it or be
happy with it.
Mr. Brewster. No ; I would not.
Senator Goldwater. I did not know whether you realized what
14 (b) was when you answered. So your answer would still be that
you did not ascertain the feelings of any candidates for Federal office
toward that section before you gave them support in the form of edu-
cation. I realize you do not support them politically, you just do it
in an educational way.
Mr. Brewster. You see, our educational part of it is done in the
localities that it is in. Those people have their own autonomy in
doing this. Senator Goldwater.
Senator Goldwater. I wanted to get the answer. All I am after
is the answer. Did you find out before you printed these pamphlets
or put on radio programs and so forth that candidate X was for or
against that section ?
IVIi'. Brewster. I tried to tell you that in any State, that they had
their own autonomy. Unless we are asked to get into anything at all,
it has to come from the local area itself.
The States themselves, if they elect to go against certain candidates
for that purpose, that is up to them. If they get out their publication
and probably recommend against voting for somebody because he
has thoughts of right to work, that is a local issue, whether it is the
governor of the State, the highest office in the State, or probably the
senator of the State, as far as acquainting the people with the in-
dividual himself.
Senator Goldwater. You do not discourage the practice ?
Mr. Brewster. Of going against those people ?
Senator Goldwater. Yes.
Mr. Brewster. No, sir.
1294 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Goldwater, That is all I wanted.
Senator Mundt. Go ahead, Mr. Counsel.
Mr. Kennedy. I have some other checks I would like to ask you
about, Mr. Brewster.
Mr. Brewster. O. K. We will get back to checks again.
Mr. Kennedy. Mr, Chairman, here are two checks. The first one
is paid to the order of Tim McCullough, for $2,500, dated December
1, 1964, of the Western Conference of Teamsters.
(At this point, the chairman entered the hearing room.)
Senator Mundt. Present this check to the witness and ask him to
identify it.
(Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. It is made out on December 1, 1954, to Tim Mc-
Cullough, for $2,500, signed by myself and John Sweeney.
Senator Mundt. Is it endorsed ?
Mr. Brewster. It is endorsed by Tim McCullough, and the address,
et cetera.
Senator Mundt. That may be made exhibit No. 103.
(The document referred to was marked "Exhibit No. 103," for
reference and will be found in the appendix on p. 1475.)
Mr, Kennedy. May I ask you about that check 'I Will you tell me
what that was for ?
Mr. Brewster. Yes. That was for the campaign of Tim Mc-
Cullough.
Mr. Kennedy, In December of 1954 ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. What campaign was going on in December 1954 ?
Mr. Brewster. That is the deficit. Pretty near every campaign
that I have seen had a deficit in it. We paid that on his deficit. That
was after he was elected.
Mr. Kennedy. What was he running for?
Mr. Brewster. He ran and was successful in being the sheriff.
Mr. Kennedy. Whom did he defeat ?
Mr. Brewster. He beat — I let his name slip my mind.
Mr. Kennedy. Callahan?
Mr. Brewster. Callahan ; yes, that is right. Thank you.
Mr. Kennedy. Did not the teamsters back Mr. Callahan in the
election ?
Mr. Brewster. The teamsters did. And he was a Kepublican ; yes.
Mr. Kennedy. How much money did they contribute to his cam-
paign?
Mr. Brewster. I don't know. I don't think, to my knowledge, that
the western conference — that we backed his campaign to any financial
extent.
Senator Mundt. Did I get mixed up ? Did I understand that the
teamsters backed one candidate but financed the other one?
Mr, Brewster. No.
Senator Mundt. This is kind of confusing.
Mr. Brewster. We lost a candidate and we picked up another.
(At this point. Senator McNamara withdrew from the hearing
room.)
Mr. Brewster. We lost a Eepublican. I want you to get this.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1295
Senator Mundt. But you financed the Democrat. I want to get
that, too.
Mr. Brewster. No, no.
Senator Mundt. No?
Mr. Brewster. A Democrat was elected, so we helped pick up his
deficit.
Senator Mundt. Did you also contribute to the campaign of the
Eepublican? Did you help with his finances?
Mr. Brewster. I haven't any recollection, but I believe that there
were contributions from a lot of the local unions for him.
Senator Mundt. This gets to be a pretty expensive practice, does it
not, if you financed the losers and then picked up the deficits for the
winners ? It would cost a lot of money.
Mr. Brewster. Well, they are in office, you know, for 4 years, so we
have to kind of get friendly with them.
Senator Mundt. Court their favor, I suppose.
Mr. Brewster, I admit that it is probably costly, and we are going
to look into the cost item, too.
Senator Mundt. We are revising your constitution now, and in
your constitutional convention that is another item to consider. I am
thinking about the poor old fellow who was out campaigning for
Callahan and contributing maybe locally to the teamsters for Callahan,
and he loses, and doggone it, he gets taxed to pay for the other fellow.
Is that basic ; the Americanism we were talking about the other day ?
Mr. Brewster. Yes. Those that are pretty close, we probably help
them both.
Senator Mundt. Teamsters are not only ones that do that, I might
add.
Mr. K>.NNEDY. This is another check dated September 11, 1956, of
the Westeern Conference of Teamsters, made to the order of Tim
McCullough, $500.
(Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. I am not too positive of what this check is for, but
I want to say about this time that there was a drive for a donation to
the boys' club in that area, and this could have been it. I am positive
that the deal was made with John Sweeney. I know that about that
time, in fact, we contributed to the boys' club in that area, and Tim
McCullough was very active in it.
Mr. Kennedy. If you were making a contribution to the boys'
club, would you not make the check out to the boys' club ?
Mr. Brewster. No ; I don't think so. I think that most checks in
this way are made out to him. It would probably be carried on down
a little further, Tim McCullough's boys' club account, or something
like that. That is as much as I know.
Mr. Kjinnedy. It is listed as a political donation in your book.
Mr. Brewster. Well, I think that would be a political donation.
Mr. Kennedy. A donation to the boys' club is a political donation?
Mr. Brewster. Well, I wouldn't term it just exactly that way, but
that is my impression of it. I didn't have anything to do with making
the check out.
Mr. Kennedy. You cannot give any explanation for that?
Mr. Brewster. No, sir ; I can't.
89330— 57— pt. 4 13
1296 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. You signed the check ?
Mr. Bkewster. I signed it, but I also want to say that I signed a
lot of checks in blank and that could have been one. I was out of
town much more than John Sweeney. While I was out that could have
been made out by Jolin Sweeney. I don't remember.
The Chairman. That check may be made exhibit No. 104.
(The docmnent referred to was marked "Exhibit No. 104," for
reference and will be found in the appendix on p. 1476.)
Mr. Brewster. I think Tim ]\IcCullough could explain it, if you
asked him. I don't know.
Mr. Kennedy. It is $500 of union members' dues, once again.
Mr. Brewster. Yes ; I know.
Mr. Kennedy. Will you explain these checks, June 30, 1954, or the
Western Conference of Teamsters, paid to the order of H. E. Leonard,
$5,000, signed by Frank Brewster and Gordon Lindsay.
The Chairman. Present the check to the witness ancl let him iden-
tify it.
(Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. This is a check made out to H. E. Leonard for $5,000,.
June 30, 1954.
The Chairman. That check may be made exhibit No. 105.
(The document referred to was marked "Exhibit No. 105," for
reference, and will be found in the appendix on p. 1477.)
The Chairman. What is the check for ?
Mr. Brewster. Mr. Leonard was one of the campaign manager's
for the Governor of New Mexico.
The Chairman. For the Governor of New Mexico ?
Mr. Brewster. Yes, sir.
The Chairman. And that check was paid to him ?
Mr. Brewster. For campaign expenses ; yes.
Mr. Kennedy. Again, Mr. Brewster, it is listed in your books of
the Western Conference of Teamsters as a retainer and fees. Will
you explain that?
Mr. I3rewster. No ; I can't. I don't know why it was put in there.
But I certainly
The Chairman. A\niat is the idea of making these incorrect entries
in the records of the teamsters ?
Mr. Brewsit:r. I don't know. I did not instruct them to do that.
The Chairman. Mr. Brewster, in your responsibilities, do you never
examine the liooks to see whether they are being kept properly, and
know where the money is going? Do you not have a sense of respon-
sibility to the membership from whom you collect dues to supervise
it and to know, for you to know, as the head of that western confer-
ence, as president of it, that these funds are being used properly, and
that the books are being properly and accurately kept ?
Mr. Brewster. I probably don't spend enough time on it.
The Chairman. I don't believe you do.
I present to you another check dated October 12, in the amomit
of $3,000, to H. E. Leonard, and ask you to examine it and see if you.
identify it.
(Document handed to witness.)
(The witness conferred with his counsel.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1297
Mr. Brewsti<:k. This clieck was made out October 12, 195-1, for
H. E. Leoiicard, $3,000, for tlie same purpose '^
The Ciiair:man. For the same purpose 'i
Mr. Brewsteij. Yes, sir.
The Chairman. How is that check listed on the records?
Mr. Kennedy, That was listed as a political donation.
The Chairman. That one was listed as a political donation?
Mr. Kennedy. That was.
The Chairman. That check may be made exhibit No. 106.
(The document referred to was marked "Exhibit No. 106," for
reference and will be found in the appendix on p. 1478.)
Senator Mundt. That was for the candidacy of the Governor of
New Mexico, I understand?
Mr. ]3rewster. Yes, sir.
Senator Mundt. $8,000 total ?
Mr. Brewster, Yes, sir.
Senator Mundt, Did he win ?
Mr. Brewster. Yeah.
Senator oMundt. Did you send a check for the loser, too?
The o-overnor, I think, is just as important as sheriff, and if you
are going to pick up the bills for both sides for sheriff, I think you
would get around to governors after a while, too.
Mr, Brewster, Senator, we always trj' to pick winners.
Senator Mundt. But if you pick losers, then you also contribute to
the winners; is that the point?
Mr. Brewster. That is right.
The Chapman. Mi'. Brewster, let the Chair ask you what personal
records do you keep, of financial records?
JMr. Brewster, I just have my checking account, checkbooks, that
is all.
The Chairman. You do not keep any bills, invoices, and so forth ?
Mr. Brewster. No ; not after they are paid.
The Chairman. Do you keep any personal record of your transac-
tions with the teamsters conference?
Mr. BI{Ew^STER. No, sir.
The Chairman. You have no records?
JMr. Brewster. No, sir.
The Chairman. Will you surrender to this committee, make avail-
able to it for examination, such personal records as you may have,
financial records, showing your transactions with the teamsters or-
ganizations and with people who have dealings with the organiza-
tions so that Ave may check with respect to the conflict of interest?
(The witness conferred with his counsel.)
Mr. BiuEWSTER. I will talk to n\v counsel.
The Chairman. You may consult with your attorney.
(The witness conferred with his counseL)
Mr. Brewster. Any of the accounts that you speak of, of the western
conference or any interest that I might do business with, I will turn
those over; yes, sir.
The Chairman. T^t me understand. You are willing, without a
subpena ? I will read to you what we want. Of course, I will get you
a sub])ena if that is necessary, but 1 am giving you the opportunity to
agree to do it and to comply with your agreement.
1298 IMPROPER ACTIVITIES IN THE LABOR FIELD
We shall want you to produce your records from the period of Janu-
ary 1, 1949, to December 31, 1956 — you may have a copy of this — in-
cluding the records of Clearbrook Stock Farm, Needmore Stables,
Trinity Farms, and any and all companies in which you have the
right to withdraw funds or sign checks ; also all of your personal cash
receipts and disbursement records, bank statements, canceled checks,
correspondence files, bills ; also all records of the Western Conference
of Teamsters, Joint Council No. 28, Joint Council Building Associa-
tion, all units within the joint council No. 28, local 174, and all units
within the International Brotherhood of Teamsters, Chauffeurs, Ware-
housemen, and Helpers, together with the bank statements, canceled
checks, cash receipts, disbursement records, minutes, bills, correspond-
ence files, and all related documents.
You may have a copy of this.
(Document handed to witness.)
Mr. Griffin-. We would like to see the statement, Mr. Chairman.
The Chairman. I will just hand you the subpena.
(Document handed to witness.)
(The witness conferred with his counsel.)
The Chairman. All right, Mr. Brewster.
Mr. Brewster. May the counsel explain, please ?
Mr. Pickens. Mr. Chairman, may I ask a question? There is a
phrase here, "Also all of your personal cash receipts and disburse-
ihents records, bank statements, canceled checks, correspondence files,
and bills."
Do we understand that that relates only to those that relate to the
subject under investigation here?
The Chairman. The Chair will be interested in that, particularly,
and there is no way that we can ascertain without examining the
whole as to which come within that category. We are not interested in
anything except that which may relate to his position with the union,
his transactions with those who have business with the union. In other
words, as counsel, you know the purpose of it, but in order for us to
ascertain that part, to be sure we get all of it, that part that is related
to his union transactions and responsibility that might reflect upon the
way he carries out his trust as a union official, is what the committee
is interested in. But in order to be able to know that we have all of it,
we have to require the submission of his entire records in order to make
the examination necessary to assure us that we have examined all
records that might pertain to the subject matter of this inquiry.
Mr. Pickens. The only question we have is whether the commit-
tee would be entitled to more than those personal records that did
relate.
The Chairman. We would have no need for them, except for this
purpose. I think counsel can appreciate the character of testimony
we have been hearing, so that we could hardly leave it to the witness
to make the segregation.
Mr. Pickens. Well, it seems to me that the committee, certainly,
in their subpena, has to deal with the subject matters concerning
which they want. I do not think a blanket subpena for all personal
records would be a valid subpena.
The CHAiRMANr. Counsel, of course, may advise his client according
to his best judgment, with such advice as he wishes to give him.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1299
Mr. PiOKENS. We will agree, Mr. Brewster will agree, to furnish
everything called for in the subpena, if it is understood that the
phrase that I read relates only to the subject matters which this com-
mittee has under investigation. Of course, that would include checks
between Mr. Brewster and any individuals that have been mentioned
in the inquiry, or any subjects mentioned in the inquiry, or any further
bills in particular that the committee wishes to furnish to Mr. Brew-
ster. But I think we are entitled to know, at least in a general way, the
subject matter concerning which the committee wishes Mr. Brewster
to produce these checks.
The Chairman. The Chair will ask counsel to make a brief state-
ment regarding the matter. I think we all understand exactly what
we want here. I do not want anything short of what is necessary for
this committee to carry out its duty in this inquiry. Proceed, Mr.
Counsel.
Mr. Kennedy. Mr. Chairman, according to the testimony that has
been given before this committee in the last 2 or 3 days, Mr. Brewster
has stated that he has had an interest in the Breel stable. We would
have to have all business transactions with the Breel stables, because
George Newell is involved, who has a financial arrangement with the
Western Conference of Teamsters; the Needmore stables because of
Fred Galeno; Superior Auto Service because of the arrangement
with Dave Beck and the arrangement that the Superior Auto Serv-
ice has with the Western Conference of Teamsters.
Mr. Brewster. That is Standard Service.
Mr. Kennedy. Yes, sir. Excuse me. Then we would have to have
all of your transactions with the El Rancho Motel, for instance, be-
cause there we find that employees of yours went down there and
stayed at union expense. That happens to be one motel that we know
about. Certainly, based on that information, there are questions
raised by other hotels. Then the transactions that you have had with
airlines. We have brought out the fact that your employees travel
on these airlines at union expense. Therefore, we would want to find
out about that, whether you ever paid back anyone for that trans-
portation, what your records show. We have had information
brought out that you filed at least what appears on the surface to be
double expenses, first with the Western Conference of Teamsters and
then with the international union.
Mr. Pickens. I think that is an unhappy word, Mr. Kennedy. I
don't think there is any evidence that there were double expenses.
Mr. Kennedy. Well, expenses covering the same period of time.
The Chairman. Mr. Kennedy said "what appeared to be." I think
the Chair would sustain him in that statement. If they are not, they
are not. If we get the records, we may be able to determine about
that. But I would use the word "appears" with this amount of force,
at least, that it raises some suspicion, and, therefore, the committee
feels it should pursue it and clear it up one way or another.
Mr. Kennedy, We would like, for instance, to find out what moneys
you have paid to these various hotels and find out whether it is cov-
ered with the expenses that you charged the western conference and
the international. You state that you needed those expenses to cover
your hotel bills and your meals. We would like to find out what rec-
ords you have to cover all of that. It seems to me, with all of that
1300 IMPROPER ACTIVITIES IN THE LABOR FIELD
information, that it covers about every financial transaction that you
had, because any of your financial transactions, according to the testi-
mony that has been given to this committee, might have been paid
by the teamster organization, or at least a great number of them have
been paid by the teamsters.
Mr. Pickens. We will certainly give you everything you have
asked for.
Mr. Kennedy. I think that is everything that is covered.
The Chairman. Thank you very much.
This subpena was served in open session of the connnittee and will
be printed in the record at this ])oint.
( Subpena referred to f oIIoavs : )
Ukited States of AMEraCA
Congress of the United States
To Feank W. Bbewster, Seattle, Wash., Oreeting:
Pursuant to lawful authority, you are hei'eby commauded to appear before
the Senate Select Committee on Improper Activities in the Labor or Manage-
ment Field of the Senate of the United States, on forthwith , 195—, at
o'clock m., at their committee room, Room 101, Senate Office Build-
ing, Washington, D. C, then and there to testify what you may know relative
to the subject matters under consideration by said committee.
And produce records as specitied on schedule A attached.
Hereof fail not, as you will answer your default under the pains and penalties
in such cases made and provided.
To to serve and return.
Given under my hand, by order of the committee, this lotli day of March,
in the year of our Lord one thousand nine hundred and fifty-seven.
/s/ John L. McClellan,
Chairman, Senate Select Coinmittce on Improper Activities
in the Labor or Management Field.
Schedule A
Subpena No. Lr-300
Fkank W. Bbewster :
Produce your records for the period from January 1, 1949, to December 31,
1956, including the records of Clearbrook Stock Farms, Needmore Stables, Trinity
Farms, and any and all companies in which you have the right to withdraw
funds or sign checks ; also all of your personal cash receipts and disbursements
records, bank statements, canceled checks, correspondence files, bills; also all
records of the Western Conference of Teamsters, Joint Council No. 28, Joint
Council Building Association, all units within the International Brotherhood
of Teamsters, Chauffers, Warehousemen, and Helpers, together with the bank
statements, canceled checks, cash receipts and disbursements, records, minutes,
bills, corresix)ndence files, and all related documents.
March 21, 1957.
I made service of the within subpena by personal service in open hearing the
within-named Frank W. Brewster, at Room 318, Senate Office Building, Wash-
ington, D. C, in open session of the conmiittee, at 1 : 55 o'clock a. m., on the 21st
day of March 1957.
/s/ John L. McClellan, Clmirman.
Mr. Pickens. I assume we will have a reasonable amount of time.
The Chairman. Yes, sir. The Chair will certainly not ask anything
unreasonable. If you can indicate about the amount of time you want,
we will consider that now.
Mr. Brewster. Can you tell me how long I will be here ?
The Chairman. Well, I am trying to get through with you today.
I hope we can.
IMPROPER ACTRITIES IN THE LABOR FIELD 1301
Mr. Bhewster. That is tlie best news I have heard since I have been
here.
The Cpiairman. Sir?
Mr. Brewster. That is the best news I have heard since I luive been
here.
The Chaikjiax. Well, it is good news to nie, too.
Is there anything fnrther?
Well, you may confer with your counsel, and also your counsel or
you may confer with the stall' here with respect to the amount of time
you think you will need, Mr. Brewster. Certainly v/e realize you have
to return out to your home and assemble these records, and a reason-
able time, a proper time, will l)e granted. The Chair can assure you
that.
Mr. Brewster. Thank you.
The Chairman. Can my colleagues return at 1 : 30, so that we are
sure we will have time to try to conclude this testimonj^?
Mr. Kennedy. I can cover one more item now.
The Chairman. Go ahead ; we will proceed a little while longer.
The Chair is doing everything he can to expedite this to a conclu-
sion.
Mr. Kennedy. Mr. Brewster, I want to ask you about the accounting
that you have made to the Department of Labor and also on your
income-tax return, and the disparity that appears to exist. We have
those broken down and miineogra]:)hed. You can examine the records
themselves here, but I want to ask you about some of those figures.
Mr. Brewster. I don't believe 1 could help you any, because that
was done through the party that makes them out, and I would have to
get the other checks or the other data that he has to assist the informa-
tion that you want.
]Mr. Kennedy. I w^ill give you what tlie figures are.
Mr. Brewster. Okay.
Mr. Kennedy. And, Mr. (IrifKn, these documents are here if there
is any question about them.
Mr. GiurriN. Thank you.
Mr. Kennedy. We will take the International Brotherhood of
Teamstei-s, INIr. Brewster.
Mr. Chairman, we have these documents themselves. Could we get
those put into evidence ?
The Chairman. Are these the originals?
Mr. Kennedy. Those are the originals from which these figures
have been taken. Mr. Adlerman can put them into evidence.
The Chairman, Mr. Adlerman ?
We will suspend with this witness for a moment.
(Members present at this point: The chairman, Senatoi-s Mundt,
and Golclwater.)
TESTIMONY OF JEROME ADLERMAN— Resumed
The Chairman. Mr. Adlerman, you have certain photostatic copies
of records of the Department of Labor, have you ?
Mr. Adlerman. I have.
The Chairman. Will you identify them so that they may be made
exhibits ?
Mr. Adlerman. I have in my hand
1302 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Make them one exhibit, A, B, C, D, and so forth.
Just identify them.
Mr. Adlerman. I have in my hand the labor organization regis-
tration form for the International Brotherhood of Teamsters, re-
ceived by the Department of Labor on January 28, 1954.
The Chairman. That will be made exhibit No. 107-A.
(The document refrred to was marked "Exhibit No. 107-A," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. I have another copy of the International Brother-
hood of Teamsters Labor Organization registration form received
February 5, 1954,
The Chairman. That will be made exhibit No. 107-B.
(The document referred to was marked "Exhibit No. 107-B," for
reference and may be found in the files of the select conunittee.)
Mr. Adlekman. I have in my hand labor organization form of
Local Union 174, Teamsters, and Chauffeurs, received February 18,
1954.
The Chairman. Exhibit 107-C.
(The document referred to was marked "Exhibit No. 107-C," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Local 174, labor organization registration form, re-
ceived April 10, 1950.
The Chairman. Exhibit 107-D.
(The document referred to was marked "Exhibit No. 107-D," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Local 174, labor organization registration form,
April 25, 1951.
The Chairman. That will be made exhibit 107-E.
(The document referred to was marked "Exhibit No. 107-E," for
reference and may be found in the files of the select committee. )
The Chairman. The Chair will instruct the clerk to mark the ex-
hibits, to continue marking the exhibits as presented, alphabetically.
Mr. Adlerman. Labor organization registration form local 174,
filed May 12, 1952.
(The document referred to was marked "Exhibit No. 107-F," for
reference and may be found in the files of the select committee.)
Mr. Alderman. The same form, local 174, received March 16, 1953,
at the Department of Labor.
(The document referred to was marked "Exhibit No. 107-G," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Joint Council of Teamsters, No. 28, labor organiza-
tion registration form, received by the Department of Labor July
27, 1953.
(The document referred to was marked "Exhibit No. 107-H," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Next is the same organization. Joint Council of
Teamsters, No. 28, received March 29, 1956.
(The document referred to was marked "Exhibit No. 107-1," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Joint Council of Teamsters No. 28, filed with the
Department of Labor on October 10, 1952.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1303
(The document referred to was marked "Exhibit No. 107-J," for
i-eference and may be found in the files of the select committee.)
Mr. Adlerman. Joint Council of Teamsters, No. 28, received by the
Department of Labor, March 31, 1955.
(The document referred to was marked "Exhibit No. 107-K," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Joint Council No. 28, received March 31, 1954.
(The document referred to was marked "Exhibit No. 107-L," for
reference and may be found in the files of the select committee.)
Mr. Alderman. Local Union No. 472, Inside Brewery Workers,
Warehousemen, Platform Men and Helpers, received at the Depart-
ment of Labor, April 27, 1950.
(The document referred to was marked "Exhibit No. 107-M," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. The same local. No. 472, received November 23,
1951.
(The document referred to was marked "Exhibit No. 107-N," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Local union 472, received October 16, 1952.
(The document referred to was marked "Exhibit No. 107-O," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Local union 472, received March 16, 1953.
(The document referred to was marked "Exhibit No. 107-P," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Local union 472, February 23, 1954.
(The document referred to was marked "Exhibit No. 107-Q," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Local union 472, received March 17, 1955.
(The document referred to was marked "Exhibit No. 107-R," for
reference and may be found in the files of the select committee.)
Mr. Adlerman. Local union 472, received February 27, 1956.
(The document referred to was marked "Exhibit No. 107-S," for
reference and may be found in the files of the select committee.)
The Chairman. Does that cover all of them ?
Mr. Adlerman. That covers all we have.
The Chairman. What you have introduced here as exhibits 107 A
through S, are photostatic copies of records now on file in the De-
partment to which you referred ?
Mr. Adlerman. That is right.
The Chairman. They were secured from the Department?
Mr. Adlerman. From the Department of Labor.
The Chairman. All right.
Mr. KJENNEDY. Mr. Chairman, could we also have put in the record
these comparisons of the compensation and allowances shown in the
Department of Labor reports versus the income-tax return on local
174, and then also on the International Brotherhood of Teamsters ?
The Chairman. How can they be vouched for ?
Mr. Kennedy. Mr. Bellino can vouch for them.
(At this point. Senator Goldwater withdrew from the hearing
room.)
(Members present at this point: The chairman, and Senator
Mundt.)
1304 IMPROPER ACTIVITIES IN THE LABOR FIELD
TESTIMONY OF CAEMINE S. BELLINO— Eesumed
The Chairman. Mr. Bellino, have you made comparisons of the
income-tax reports and the financial statements?
Mr. Bfxlino. I have; yes, sir.
The Chairman. Do you have those comparisons tabuhited?
Mr. Belling. Yes, sir; we have a mimeographed copy made up
from our worksheet.
The Chairman. You have a mimeographed copy made up from
your worksheet ?
Mr. Bellino. Yes, sir.
The Chairman. Do you have the original worksheets ?
Mr. Bellino. Yes, sir.
The Chairman. Are the mimeographed copies true and accurate?
Mr. Bellino. Yes; except for the last year which should be 1955
instead of 1953, on local 174.
The Chairman. With that correction; are tliey accurate?
Mr. Bellino. Yes, sir.
The Chairman. Then they may be made exhibits Nos. 108 and 109.
(The documents referred to were marked "Exhibits Nos. 108 and
109" for reference and will be found in the appendix on pp. 1479 and
1480.)
Mr. Kennedy. Mr. Bellino, could I ask you one other question ?
Mr. Brewster signed the income-tax returns; is that correct?
Mr. Bellino. Yes, sir.
Mr. Kennedy. And he signed that they were accurate ?
Mr. Bellino. I would believe that if he signed them, tliat is what
it means.
Mr. Kennedy. And also the Department of Labor reports ?
Mr. Bellino. On certain of the reports, he signed, and on others,
others signed.
TESTIMONY OF FRANK W. BREWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
Mr. Kennedy. Could I ask you some questions first about local 174?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Per your comparison of the reports to the Depart-
ment of Labor versus those for the income-tax return, in the Depart-
ment of Labor you show $10,402.50. By your income-tax return, you
show $15,622.50. Can you give us any explanation of that ?
Mr. Brewster. The only thing it possibly could be is additional
income from other source.
Mr. Kennedy. This is for local 174. You certified this as the
income in the Department of Labor certificate as the income from
local 174 to be $10,402.50 and in your income tax return you certify
it to be $15,622.50.
Mr. Brewster. I cannot explain it, because I would have to talk
with the party tliat drew it up. I did not draw it up at all. I took
his word for it, and whatever it is, I signed and I turned it in.
Mr. Kennedy. You signed it to be accurate, Mr. Brewster.
Mr. Brewster. Wei], because he told me it was accurate.
Mr. Brewster. Who is "he" ?
Mr. Brewster. I think Fred Verschueren, Jr.. made this out.
IMPROPER ACTIVITIES IN' THE LABOR FIELD 1305
Mr. Kennedy. For your income tax return, also?
Mr. Brewster. Yes, sir.
Mr. Kennedy. And then in 1950, it is $10,402.50.
Mr. Brewster. It is the same thing right straight through.
The Chairman. Yon have examined a copy of this, have yon, Mr.
Brewster ?
Mr. Brewster. Yes, sir, I have.
The Chairman. The copies of the comparisons which have just
been made ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Would tliere be any reason or exphmation tliat you
did not want the international to know how much money you were
getting from the local and that is why the money was dropped?
Mr. BREWsrKR. There wasn't any way at all in anything that I told
anybody to cover np anything. That is a true report of what the
bookkeeper made out and I signed it, and that is all I know.
Mr. Kennedy. If Fi-ed Verschueren did your income tax returns
and also did the certificate to the Department of Labor, how could
he get two di fie rent figures?
Mr. Brewstfj?. That would be a question that he would have to
answer.
Mr. Kennedy. You signed them, Mr. Brewster.
Mr. Brews'iur. Because he told me. I didn't even — I took his word
for it. I didn't compare one with the other or anything else.
Mr. Kennedy. For instance, in the Department of Labor, going to
the International Brotherhood of Teamsters and the income that you
got from the International Brotherhood of Teamsters, and comparing
that with the Department of Labor and your income tax return for
the year 1955, you told the Department of Labor you made $16,991.62,
and on the income tax returns you show only $6,000.
(The witness conferred with his counsel.)
Mr. Brewster. Isn't it possible that some of that could be expenses ?
Mr. KJENNEDY. Are you not supposed to mention that in your in-
come tax ?
Mr. Brews'ter. I don't know.
Mr. Kennedy. You do not know that ?
Mr. Brewster. He is supposed to know it. I don't know it myself.
Mr. Kennedy. Again, it is your income tax returns. If somebody
goes to jail, it is not Fred Verschueren, it is Mr. Brewster.
Mr. Brewster. Nobody knows that any better than I do.
Mr. Kennedy. Can you give us any explanation ?
Mr. Brewster. No, I cannot, until I discuss it with him and see how
he made this out and how he came to this figure and these figures that
are down here. I am just as blank on it as I can be, because I haven't
discussed it with him. I don't know anything about it.
Senator Mundt. Who is Mr. Verschueren? Is he an auditor, an
internal revenue collector, a bookkeeper, or what is he?
Mr. Brewsitsr. The head bookkeeper.
Senator ^NIundt. In the western conference?
Mr. Brewster. No, he is working for joint council and 174 and
other local unions. We have kind of a bookkeeping department that he
works for as the head of tlie bookkeeping department.
Mr. Kennedy. Did you get $10,991.62 as expenses from the Interna-
tional Brotherhood of Teamsters ?
1306 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. I don't know that.
Mr. KJENNEDY. Does that sound like a proper figure — ^that you got
that much money in expenses?
Mr. Brewster. That is possible, yes.
Mr. E^ennedt. You got $11,000, just under $11,000, in expenses?
Mr. Brewster. I said it would be possible. I answered that one.
Mr. Kennedy. Just tell me. Is that roughly the figure that you
got in expenses ?
Mr. Brewster. I do not know what this means. I have to, before I
make a positive statement that it was or could be, I would want to talk
to the man that made it out.
Mr. Kennedy. I am not asking you about who made it out or any-
thing about this. Let me just ask you : Is it possible that you got ap-
proxunately $11,000 in expenses from the International Brotherhood
of Teamsters in 1955 ? Does that seem reasonable ?
Mr. Brewster. I don't know whether it is reasonable or not.
Mr. Ejennedy. You do not know how much you got in expenses
from the international brotherhood?
Mr. Brewster. No, sir.
Mr. IvENNEDY. You canuot give any explanation of any of the
figures, then, Mr. Brewster ?
Mr. Brewster. No, sir ; I can't.
Mr. Kennedy. We went over that so quickly we can probably go
over another item.
Senator Mundt. Is this Mr. Verschueren the same man who is the
auditor of the international?
Mr. Brewster. No, sir ; it is the son.
Senator Mundt. He is the son ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Mr. Chairman, here is a check.
The Chairman. Mr. Brewster, the Chair presents to you what pur-
ports to be a photostatic copy of a check dated July 24, 1955, signed
by you as president of the Western Conference of Teamsters, check
No. 5, drawn on the Seattle First National Bank, Seattle, Wash.,
payable to the order of Samuel B, Bassett, in the amount of $100,000.
Will you examine this check and state what it is ?
(Document handed to witness.)
(The witness conferred with his counsel.)
The Chairman. State what that expenditure was for.
(The witness conferred with his counsel.)
The Chahjman. Do you identify the check ?
Mr. Brewster. I do.
The Chairman. It may be made exhibit No. 110.
(The document referred to was marked "Exhibit No. 110," for
reference, and will be found in the appendix on p. 1481.)
The Chairman. Mr. Counsel, you may interrogate him.
Mr. I^nnedy. Could you tell the committee what the $100,000
was given to Mr. Samuel Bassett for ?
Mr. Brewster. Yes, sir. And I would like to explain it, if I can,
by telling the committee, because I think it takes an explanation.
That is one of the checks — you have others, and I think if you got
them all together I think it would simplify this
IMPROPER ACTIVITIES IN THE LABOR FIELD 1307
The Chateman-. We will be glad to accommodate you. I will pre-
sent you another check dated September 13, 1955, check No. 7, drawn
in the same manner, on the same bank, payable to Smith and Denny
Branch, Seattle, Wash., First National, in the amount of $50,000.
Will you examine that check and state whether you identify it.
^Document handed to witness.)
(The witness conferred with his counsel.)
Mr. Brewster. Yes, I identify it as made out to the bank and
signed by myself and John Sweeney, for a draft to Montreal, Van^-~
couver, British Columbia.
The Chairman. Now you wish to explain those checks?
Mr. Brewster. Those are the only two that you want to present at
this time ?
The Chairman. At this time. That will be exhibit No. 111.
(The document referred to was marked "Exhibit No. Ill," for
reference, and will be found in the appendix on p. 1482.)
Mr. Brewster. There was a company, a trucking company, named
PIX.
The Chairman. Named what?
Mr. Brewster. P-I-X. I think spelled out it was the Pacific Inter-
Mountain Express.
Senator Mundt. P-I-E.
Mr. Brewster. No. That is why they had to change it from E to X.
Senator Mundt. I was driving out in that area last fall. I thought
it was P-I-E.
Mr. Brewster. Originally it was E, and then they did it like XmaSy
I guess, with an X. It is a Canadian firm. It was the largest truck-
ing company in Canada. We had organized about 160 employees.
We had the model agreement for Canada with this company.
The Chairman. A what?
Mr. Brewster. A model agreement, a trucking agreement contract
with the company, the union. There were a few other minor com-
panies, and we were in the process of organization. This company
got in financial difficulties where it looked like they were going to fold.
Mr. Coley Watson came to my office time and time again and prevailed
upon me to take it up and see if I couldn't give him some help so that
this organization would not wrap up.
I discussed it at length with our people, our organizers, discussed
it from time to time with individuals. I went down because it was
necessary to take some immediate action because they were up against
meeting their obligations or closing their doors.
Of all of the people that I talked to, they were 100 percent in accord
of giving them financial assistance, and to get as much security as
we possibly could get to cover the loans, and tliat we proceeded to do.
After we got into it for this amount, we found out that it needed
some strict attention and so forth, and they needed more money. We
got stuck. We got mortgages on equipment. We got everything in
the way of collateral that we could get to cover the loans that we were
giving.
I knew a man in Seattle by the name of Eobert Acheson that I felt
was one of the best operators in the western part of the country in
the trucking industry. I asked him if he wouldn't aid and assist us
in trying to straighten out a company that I felt had probably the
1308 IMPROPER ACTR'ITIES IN THE LABOR FIELD
biggest potential of any company in Canada, the biggest trucking
company. After spending several hours with him, showing him the
records, he took an auditor to Canada, went over their books in gen-
eral, got all of the data that was necessary — and, incidentally, this
Robert Acheson owns the Black Ball Freight Lines that run into
Canada. He went along on that presumption, took a complete audit,
came back and told me that the picture wasn't too bright, but it looked
that they had w^onderful rights, wondei-ful places to run, trucking
in Canada was in its infancy, and that he felt that it could be taken out
of the hole and could be saved.
We did not start as an investment. We started at saving 1(U) jobs
of the workers, and also the work that we had accomplished for several
years of organizing in that area.
Senator Muxdt. There is something wrong there. There must be
more than IGO jobs that vou put tliat much money in. Was there
160,000 jobs?
Mr. Brewster. No. In trucking, that is a pretty good size truck-
ing outfit. It isn't a small outfit, 160.
Mr. Kennedy. How much mone}' did you put in altogether?
Mr. Brewsitsr. I haven't the exact figure, but I think it is in excess
of $400,000.
Mr. Kennedy. To save 160 jobs?
Mr. Brewster. No. To save not only 160 jobs — that wasn't our
motive altogether. I know that it would cost — I know something
about cost of organizing. If that company had folded and we did
not have that type of agreement in Canada, it would cost us double
that to start over again and get agi-eements.
Mr. Kennedy. What do you mean "we" ?
Mr. Brewster. The teamsters in the western conference.
Mr. Kennedy. You people had an agreement with this trucking
company ?
INIr. Brewster. Yes, sir.
Mr. Kennedy. And did you have an agreement with any other
trucking companies ?
Mr. Brewster. A few minor ones.
Mr. Kennedy. So you put this money, over $400,000, into a truck-
ing company with whom you had a contract in order to insure this
company's continued existence, is that right?
Mr. Brewster. Yes, sir ; that is right.
Mr. Kennedy. And to save the 160 jobs?
Mr. Brewster. To save the 160 jobs and to save all of the work that
it took us to get up to that point. That was the paramount job in
organizing Canada. I think that this deal is just about as good a
deal, and I think everybody out there feels the same way about it.
1 don't see any harm in what we did. In fact, now it looks like it is
a good deal and a better deal than anything we could have expected.
Senator Mundt. Finish your story, Mr. Brewster. Did you save
the jobs? Did you get your money back? A'\niat happened?
Mr. Brew^ster. We are in a position — we saved the jobs. There
was new management put in. Mr. Acheson saw that the whole thing
was streamlined, and things were cut here and there, and the operation
now is operating in the black. I don't think it will be long until we
will get every dime back that we put in it, and I am kind of proud that
IMPROPKR ACTIVITIES IN THE LABOR FIELD 1309
we saved not only the jobs but saved all of the hard work that we did to
organize Canada and this particular job itself.
I know this, and I feel it just as sincerely as I can say it, that this
helped Canada much more than the amount of money involved, and
we will get the money back.
Mr. Kennedy. Tell me this, Mr. Brewster : If this was such a fine
deal and good arrangement for you, why was it handled in the man-
ner that it was handled? Why did not the money just go right into
this company instead of going through Mr. Bassett?
Mr. Brew^ster. I thought that it was the best to do it that way to
handle it in more or less secrecy from the standpoint of other operators
that might get into trouble and feel that they would want a loan, too.
I do not make a practice of this. It is only in a very rare emergency.
I felt by keeping the publicity down — now it is all over the world —
tliat it would help us to not be having people say "Well, my outfit is
bad, why don't you help me?" I wouldn't do this in a well organized
area, where competition is keen and we are well organized. I would
not invest in the companies that might have bad management and
might be going broke.
Mr. Kennedy. Have you loaned any sums comparable to this to
any other trucking company in the United States ?
Mr. Brew^ster. We are loaning tlie Black Ball Freight Line
Mr. Kennedy. That is the same Mr. Acheson?
Mr. Brewster. Mv. Acheson — that is building a ferry that will cost
over $3 million, that will run between Seattle and Vancouver, and
we are secured in every way on the moneys that we are loaning.
Mr. Kennedy. How much monev are you loaning Mr. Acheson?
Mr. Brewster. $250,000.
Mr. Kennedy. Is Mr. xVcheson the negotiating teamster for the
west coast truckers, with the teamster organization ?
Mr. Brew^ster. Xo, he w^as not on the negotiating team with the
western truckers in their last negotiations.
Mr. Kennedy. Has he been on at all ?
Mr. Brew^ster. No, sir.
Mr. Kennedy. He never has ?
Mr. Brewster. No, sir.
Mr. Kennedy. He never had any position on that?
Mr. Brewster. No, sir, not on the western truckers, the western
conference.
Mr. Kennedy. Does it appear to you, Mr. Brewster, that there is
anj'^ danger in this policy of loaning money to organizations or truck-
ing companies that will make a contract with you?
Mr. Brewster. I have never had that in my mind, and I wash you
wouldn't put it there.
Mr. Kennedy. Now that I put it there, will you answer the
question ?
Mr. Brew^ster. I have never had it in my mind.
Mr. Kennedy. Do you tliink that there is any danger in that?
Mr. Brewster. I do not believe so. I will deal with evei*ybody
level and aboveboard right on top of the table regardless of any other
relationship, friendship or anything else, and I have a reputation
and record of doing it.
Mr. Kennedy. If this company had not had a contract with the
teamsters, would you have loaned them over $-iOO,000?
1310 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. If it was a nonunion concern ? Certainly I wouldn't.
Mr. Kennedy. Was this a loan ? Let us get the term straight. Is
this a loan or did you purchase stock or what ?
Mr. Brewster. It is a loan, it is a partial loan and stock. We get
stock to cover it, and equipment.
Mr. EJENNEDT. How much of it was a loan and how much was the
purchase of stock ?
Mr. Brewster. I don't know how it is divided.
Mr. Kennedy. You don't know how a deal as big as this is divided,
Mr. Brewster ?
Mr. Brewster. No, I don't.
Mr. Griffin. I believe the counsel is getting mixed up, Mr. Chair-
man. It was all a loan.
The Chairman. Let the witness answer.
Mr. Brewster. I considered it a loan.
The Chairman. All right. If it is all a loan, it is all a loan.
Mr. Kennedy. What do you mean that you considered it a loan?
Could you explain that? You say you just loaned them the money,
is that it?
Mr. Brewster. Loaned them money and they put up collateral for
the loan.
Mr. Kennedy. Did anybody consider, did Mr. Acheson consider,
that you were purchasing stock ?
Mr. Brewster. Sir, these are put up just to secure the loan, in my
opinion.
Mr. Kennedy. You said that it was a loan. Was it a loan or did
your purchase
Mr. Brewster. Yes, it was a loan, and the stock is up as security.
Mr. Kennedy. Then it was all a loan?
Mr. Brewster. Yes.
Mr. Kennedy. And there was never any question, you know the
answer to that, it was all a loan, is that right ?
Mr. Brewster. Well, now, wait a minute. In my opinion it was a
loan, and we got as much security as we possibly could for the loan.
That is what I am trying to say.
Mr. Griffin. Mr. Chairman, may I say this : At one time I listened
in on an investigation that Mr. Fulbright conducted and I listened
to the accountants for days discuss what was a loan and I don't even
believe accountants know what consists of a loan or what consists of
security of stock, because they certainly didn't agree in that hearing.
The Chairman. The Chair is not familiar with that hearing and
cannot comment upon it. I think most of us know what a loan is,
and most of us know what a purchase is. So we may continue to
interrogate the witness as to whether some part of this is purchase or
some part of it loan, some part of it gift, whatever it amounts to. I
do not Imow what is involved in this transaction.
I have before me now an affidavit that I am reading that possibly
will throw some light on it. I assume counsel has read the affidavit.
Proceed.
Mr. Kennedy. Tell me this : What was your arrangement with Mr.
Acheson. What was he to get out of this deal? I am again trying
to find out the explanation of whether this is a loan or whether you
were purchasing stock. Wliat was he to get out of this ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1311
Mr. Brewster. I don't recall that he was going to get anything
other than if the — I think by this loan that we had control of the
company, and that if it was a deal and he could make any money over
and above what he had in it, why, it was his deal.
Mr. Kennedy. I do not understand what that means.
JNIr. Brewster. I don't, either.
Senator Mundt. I think one way to determine whether this is a loan
or not, Mr. Brewster, is this : Was it an interest-bearing negotiation ?
Mr. Brewster. Yes ; we get interest.
Senator Mundt. What rate?
Mr. Brewster. I believe it is 5 or 6 percent on some of it. There is
interest that we are getting.
Senator Mundt. On the part that you are getting interest, as it is
obviously a loan, or on the part that you do not get interest.
Mr. Brewster. Well, that possibly could be a mixture of a loan and
stock. I am not positive about that.
Senator Mundt. In other words, you think part of it was a loan on
which you got interest and part of it you invested in the company as
stockholder ?
Mr. Brewster. That could possibly be construed as that, but I think
our whole intent and whole objective
Senator Mundt. It started out as a loan ?
Mr. Brewster. Yes ; it did, and then to get security we had to do this.
Senator Mundt. You bought the stock after that ?
Mr. Brewster. Yes, sir, I believe that is true.
Mr. Kennedy. Tell me this : When you put up this money, approx-
imately $400,000, and you brought Mr. Acheson in on it — right?
Mr. Brewster. Not until the time that we were in a position of
where we had to put some more money in it. He didn't come in from
the conception.
Mr. Kennedy. What did Mr. Acheson put in on it ?
Mr. Brewster. He didn't put in anything, other than his time and
effort to straighten it out.
Mr. I^NNEDY. Were you paying him a salary ?
Mr. Brewster. No, sir.
Mr. KJENNEDY. Wliat did yovi tell him that j'ou would give him?
AVhat did you tell him that you would give him or pay him for the work
that he was doing ?
Mr. Brewster. I don't think I had any arrangement.
Mr. IvENNEDY. You mean he just came in there ?
Mr. Brewster. Yes; he just came in there. I asked him to help,
because I knew that he knew something about the business.
Mr. Ivennedy. Why did he go up to Canada and try to reorganize
the company for nothing?
Mr. Brewster. Well, there is some people that will do that for a
friend of theirs.
Mr. Kennedy. Is that wh;^ he was doing that, as a friend of yours ?
Mr. Breavster. That certainly was the way that it started.
Mr. Kennedy. All right. That is the way it started. Did it finish
any differently ?
Mr. Brewster. I don't know whether it did or not. I don't
Mr. Kennedy. Mr. Brewster, you are in charge. You are president
of the Western Conference of Teamsters.
89330— 57— pt. 4 14
1312 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewsi-er. I know that. I have been reminded for 2 weeks
about that.
Mr. Kennedy. This is over $400,000. You must know the explana-
tion.
Mr. Brewster. That is true. Will you read the part you are re-
ferring to ?
Mr. "Kennedy. When I mentioned to you about a $15 bill at the El
Kancho Motel, and you cannot explain it, that is perhaps understand-
able, but when it is $400,000 of union members dues, can you explain
wliat the arrangement was with Mr. Acheson?
Mr. Brewster. The arrangement with Mr. Acheson — —
Mr. Kennedy. Start it at the beginning and how you ended up.
Mr. Brewster. The deal with Mr. Acheson was this, that we wanted
liim to see that the management of that place would be put into the
sliape that we would get our money back.
Mr. Kennedy. What was he going to get out of it, just as a friend
of Frank Brewster's ?
Mr. Brewster. I don't know what he was going to get out of it.
If he wanted to take the deal over and get our money back, he could
have the deal. That was probably it.
Mr. Kennedy. What does that mean, to have the deal ?
Mr. Brewster. Well, to have the stock. We had stock in there.
Mr. Kennedy. Where was the stock that he could get? I thouglit
you did not have the stock.
Mr. Brewster. I think there is some stock that was put up.
Mr. Kennedy. I thought it was a loan.
Mr. Brewster. Well, there is stock involved in it, too, to protect our
loan as much as we can.
Mr. G'riffin. Mr. Counsel, you make a loan and you put up stock
as security all of the time. That is fundamental.
Mr. Kennedy. I am sorry.
Could I just ask this: The Western Conference of Teamsters made
the loan, riglit ? Then the stock was put up in the Western Conference
of Teamster's name? That would be the way you would ordinarily
handle a loan.
Mr. Brewstp:r. Now, wait a minute.
Mr. Kennedy. I am sorry.
Mr. Brewster. I am going to have to hire you to make my loans.
I turned this over to attorneys to make this deal. That was done with
Mr. Bassett, and Bogle, Bogle, & Gates, I believe, on the other part.
That is the deal that was made, and I turned it over, and I took their
word that it was a deal that would stand up. So it was done through
attorneys, and I didn't make the deal, but I had to hire attorneys to
do it.
Mr. Kennedy. Can you explain, and I don't think I am being un-
fair, just explain about the arrangement on the collateral for the loan?
Mr. Brewster. That is in the deal, and the attorneys can explain
tliat, and I cannot.
Mr. Kennedy. Mr. Brewster, again, I don't want to keep saying
it, but you are the president
Mr. Brewster. I am the president of the council. You don't have
to. You are doing it.
Mr. Kennedy. I would think if anybody would know how this
money was used, it would be you.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1313
Mr. Bkewstkr. 1 tiini these matters of this kind over
Mr. Griffix. Mr. Chairman.
Mr. Kexxedy. Mr. Griffin, let him answer.
Mr. Griffix. JNIr. Chairman, I snbmit that the counsel is badgering
{he witness. I hate to keep doing this. I don't want to do it.
The Chairmax. I do not believe the word "badgering" is a proper
word.
Mr. Griffix. Strike the word "badgering", then.
The Chairmax. The counsel of the committee is having consider-
able difficulty, and I am sure my friend has observed, trying to get
the facts, to get the whole truth. We have a witness who does not
remember, and then when we get down to these important things,
involving $400,000, his explanation is more confusing than enlight-
•ening.
So I hope we will proceed. I trust the witness will try to give us
the facts. I think, from what 1 see before me, there are some things
-within his knowledge he obviously could testify to.
Let us proceed.
Mr. Kexxedy. Would you just tell me this, Mr. Brewster: Wliat
were your conversations with Mr. Acheson as to what was to happen to
the stock or what he was to get out of the deal ?
Mr. Breavster. My only conversation that I recollect was that I
brought Mr, Acheson in to straighten out the deal and do the best that
he could and help us in the situation in Canada.
Mr, Kexxedy. Do 3- ou remember
Mr. Brewster. Wait a minute. From there on I turned that over
to the lawyers and had them Avork out the deal with Mr. Acheson to
see that we could accomplish that.
Mr. Kexxedy. Was he to receive and get the stock from this
company ?
Mr. Breavster. He could have, if he got our. money back.
Mr. Kexxedy. Then there was that arrangement?
Mr. Brewster. There could have been.
Mr. Kexxedy. Well, was there ?
Mr. Brfavster. I said to him there that the only thing that we are
interested in in this deal is to get the money and the interest on the
money back. That is all I said. I said from there on I am not inter-
estied, I don't want to be in on it, cut in on it a dime, or I don't want
anybody else in on it. All the teamsters union is interested in is get-
ting their loan back or their money back, whatever you want to call
it back, with the interest on it, and I think we are on the road to do it.
Mr. Kexxedy. You said you did not want anybody else to get a
dime out of it. Did tliat include Mr. Acheson?
Mr. Brewster. Anybody else in our organization. I didn't com-
plete the statement.
Mr. Kexxedy. Then you were going to turn the company over to
Mr. Acheson?
Mr. Breavster. If Mr. Acheson paid off the moneys that we had in
there, he certainly could have had the deal.
Mr. Kexxedy. What did that mean, "he certainly could have had
the deal"? Does that mean he could have had the company?
]Mr. Brewster. A portion of the company, and Avhat portion, I
don't know. But he could have had whatever we had.
1314 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. You remember now that you had some conversa-
tions along that line?
Mr. Brewster. Yes ; I think we did.
Mr. Kennedy. That he was doing it other than being a friend of
Frank Brewster's ?
Mr. Brewster. Originally he started that way, and he could have
gone along. If he had gone up and made the investigation and so
forth, and said, "It's hopeless, don't enter into it," there wouldn't
have been 5 cents involved. I wouldn't have had to pay him for the
knowledge.
Mr. Kennedy. Did he tell you that, that it was a hopeless deal?
Mr. Brewster. No, sir ; he stated that it didn't look too bright, but
he said that he thought they could dig it out.
Mr. Kennedy. Let me just ask you : When you made the loan of
approximately $400,000, then you received back as collateral for the
loan the stock ? You do not know that ?
Mr. Brewster. That deal was made with the attorneys, and what-
ever they did, and whatever stock that there is, it is in the proper place,
I am positive.
Mr. Kennedy. But did you want to make sure that your attorneys
were giving the Western Conference of Teamsters the stock, or did
you care, or what was the arrangement ?
Mr. Brewster. I had the confidence in the attorneys, that they were
representing in a very good manner the Western Conference of Team-
sters. I hire good attorneys.
Mr. Kennedy. Thank you.
The ChxVirman. The Chair has an affidavit, and the original is
here, from Mr. R. J. Acheson. That may be read into the record at
this point, and printed in the record at this point. The witness and
his counsel will be provided a copy of it.
The Chair would like to conclude this morning's session, and we
may resume further interrogation on this particular transaction im-
mediately after recess.
Senator Mundt. Mr. Chairman, I would like to have the attention
of Mr. Griffin.
The Chairman. Let us have order, please.
Senator Mundt. I have a responsibility to impose on the good at-
torney during the lunch hour.
Your client volunteered the statement on occasion that he has a
bad memory, and he has agreed to try to call Seattle and get the
breakdown of dues during the lunch hour. Will you undertake the
responsibility to remind Mr. Brewster to do that ?
Mr. Griffin. Yes, sir ; we will do that.
Senator Mundt. I thought maybe it slipped your mind, and I
wanted to have that.
Mr. Brewster. Thank you, Senator.
The Chairman. The affidavit will be read into the record after
Imich.
We will now stand in recess until 2 o'clock.
(Members present at this point: The chairman, and Senator
Mundt.)
(Whereupon, at 12:45 p. m., the committee recessed, to reconvene
at 2 p. m., the same day.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1315
AFTERNOON SESSION
(The hearing was resumed at 2 p. m., Senator John L. McClellan,
chairman, presiding.)
The Chairman. The committee will be in order.
(Present at the convening of the hearing were Senators McClellan
and Goldwater.)
The Chairman. Mr. Brewster, will you come forward, please?
TESTIMONY OP FRANK W. BREWSTEE, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
The Chairman. Proceed, Mr. Counsel.
; Mr. EjeNnedy. We were discussing this morning, Mr. Chairman,
about the loan that was made to this company up in Canada and we
have an affidavit that has not been read in, of Mr. R. J. Acheson. Do
YOU want to read that affidavit in at this time ?
The Chairman. I will let counsel read it in.
Mr. Kennedy. The assistant counsel may read it in.
Mr. Griffin. If you want to put it in, we will stipulate it is true.
The Chairman. If it is stipulated to be true by the witness, the
Affidavit may be printed in the record at this point and we will proceed
to interrogate him about it without reading.
•County of King,
State of Washington, ss:
I, R. J, Acheson, residing at 8751 Overtake Drive, Bellevue, Wash., having been
^uly sworn on my oath do voluntarily depose and say that :
In June or July of 1955, I got a call from Frank Brewster, asking that I come
up to his office in the Western Conference of Teamsters' Building, Seattle. Frank
wanted to knov? if I knew Coley Watson, I said I knew he was running a truck-
ing outfit in Canada, Pacific Inland Express, Ltd.
Frank told me that 2 or 3 truck outfits had gone broke in Canada, recently.
He said that Pacific Inland Express (known as PIX) was one of the largest
and they were about to be put into receivership. He said the Western Confer-
ence of Teamsters wanted to help PIX. That the teamsters had lent Pacific
Freight Lines some $250,000 a couple of years ago to keep them alive.
I understood they got all their money back in a few months. Frank said
they wanted to do the same thing up there for PIX. He said the company
needed $50,000 badly, and they didn't know whether Watson was capable of
running the company.
They didn't want the teamsters to have any part of it. Then Frank said:
"I have been thinking about this for several months and I suddenly think I
struck lightening; we can trust you, and I want you to take this $50,000 and
put it in the bank for PIX." Brewster handed me a check. I had him make
out another check and this check was given to my attorney, E. G. Dobrin of
Bogle, Bogle and Gates, as trustee and they put the money into PIX.
It was deposited in the Canadian Bank of Commerce, Vancouver, British
Columbia. Frank then called Coley Watson into the office. I told him I would
go up to Vancouver, and take a look, and take my auditor with me.
When we got to Vancouver, the auditor gave the books a fleeting look and
told me the company was in terrible shape. I went to Frank, and I told him
the western would be putting money down a rathole to pull PIX out, and he
said to me : "Well, we can't afford to let PIX go broke. We spent a lot of money
organizing them ; we are willing to put more money in there."
I told him I would look into it some more. I also told him that if he was
going to put any more money in it, he had better take control of the stock at
PIX and he told me : "We can't take any of the stock."
I ascertained that James Richardson & Sons in Winnipeg, who are investment
bankers, brokers and grain dealers, wanted to get out. They had been sold a
bill of goods by this guy Watson, and had put $300,000 in PIX. They took
1316 IMPROPER ACTIVITIES IN THE LABOR FIELD
$200,000 of preferred stock and mortgages of $90,000, or something. I wenC
back to Frank and I told him if he would put Watson in there, he would have
lo take out Richardson's crowd ; otherwise, they were going to liquidate the
comiiany.
They also had a deal for conversion of the preferred stock to common stock,,
if the truckline did not meet its obligations by a certain date. I found out
Richardson was willing to sell for 50 cents on the dollar, $198,000 Canadian;
or $200,000 American.
I went back to the teamsters and told them the story, and they agreed to take
Richardson out. Two checks from the teamsters, each for $100,000 were drawn
to Sam Bassett. trustee, $100,000 and $100,000; a third check for $r.,000 was
drawn to Bassett.
All of these checks were endorsed to Edward G. Dobrin, trustee, and with the
funds I purchased the interest of Richardsons, as well as the $5,000 interest of
Rod McDonald, a Vancouver. British Columbia, attorney,
When I went back to the teamsters, I had 60 i)ereent of the common stock,,
all the preferred stock, and $90,000 in mortgages. I took the whole deal up with
Brewster and I said, "What do I do with the stock?"
Brewster called in John Sweeney and he said : "Thei-e isn't a person in the
teamsters union who can have one dime of this stock, but. Bob, if you can pull
this company out and keep this company going, and we get our money back, the
common stock is yours."
This would mean that I would own 60 percent of FIX. I took active control
of the company in July 1955. I thought Watson could run it, but he got ini
deeper and deeper and pretty soon he was up against the wall again.
I told him he couUlnt' spend another dime without my approval. He said'
the company was broke unless they got $140,000. I surveyed the equipment
and found they had not mortgaged $175,000 woi-th of salable trucks. I sub-
mitted the deal to Brewster and I told him this was not a loan to FIX, but a
clean-cut mortgage on equipment.
lie agreed to the mortgage for $140,000 payable in equal monthly installment.s
at 6 percent interest, the mortgage to go to Sam Bassett, trustee. Everything
was fine until April 1956. They had to shut down FIX operations during the
spring thaw, and they lost $29,000 that month.
Watson said they needed $45,000 and I called Frank and told him we needed'
the money, and said we would issue some preferred stock as security. He said
it was all right, and we received the check. I immediately removed Watson
and put in a new team on September 1, 1956; since then the company has made
money.
Our auditors say that the net, after depreciation, for 1957, would be about
$86,000 plus $100,000 depreciation. I have talked to Pacific Intermountain
Express and Consolidated Truck Lines about buying the company ; PIE have said'
they are not interested, hut Consolidated still is.
I told Consolidated they could buy it if they would just take the Teamsters
out. This would involve $440,000 less the money which has been put back OU'
the mortgage. I don't care if I make a dime on the deal.
I announced several years ago that I was going to build a $3 million combined
passenger and cargo ship to operate between Seattle and Canada. My company
was the only company in the United States which loaded and unloaded ships with
teamsters.
I made an announcement that I was going to build a ship, and it was widely
reported in the local press. I ran into Dave Beck one day at lunch, and asked
Beck where I might get the money for the ship. Beck told me the union had
$25 million it wanted to lend out and why shouldn't the teamsters finance the
shipV
I entered into detailed correspondence with Beck on the problem, but nothing
ever came of it. By late last year, however, I had been able to get an insurance
company to put up the bulk of the money needed, but I still needed $600,000 in
equity capital. I got the shipyard to take its profit in class B stock.
I found some other money, but I was still short approximately $300,000. I
asked Beck again if he would loan me the money for this portion of the ship
and Beck said he would take it up with the teamsters executive board, but I
had never heard from him since.
Finally, I called Frank Brewster and told him : "Frank, you have something
to protect in this operation, why can't the union loan me $300,000?" Brewster
said he would take the matter up with the directors of the western conference,.
OIPROPER ACTIVITIKS IN THE LABOR FIELD 1317
ami about '.) weok.s ajjo lie called iiie and told me the iniiou would go along and
loan me ,$250,000.
In return for this loan the union will be issued class B common stock, at 5
percent interest, redeemable by me any time.
I solemidy swear that the foregoing statement dated this 10th day of March
W~}7, consisting of three pages, has been read by me, and it is true and correct
to the best of my knowledge and belief.
R. J. ACUESON.
Subscribed and sworn to me this date. Marcli 10, l!).!?.
Wii.r.iAM K. Ryax.
Notary Public.
The Chairman. The affidavit is the one that the Chair referred to
this morning, of ]\Ir. R. H. Acheson, sworn to on the 10th day of
March 1957, before William K. Ryan, notary public. It was taken
in the county of King, State of Washington.
All right, proceed.
Mr. Kennedy. I am just going to try to trace this deal through
with you again, Mr. Brewster, if we may. Now, I notice m the affi-
davit that the first thing after Mr. Acheson was brought in on the
deal, he reported back to you that the deal looked like "pouring money
down a rathole.*'
You felt that you could not allow this company to go broke. This
is about 10 lines up from the bottom on the first page. He said it
was in terrible shape.
Mr. Brewstsr. I remember the conversation. As I remember it, he
didn't use this language of "pouring it down a rathole." I think
that he said it looked black, but I was under the impression after I
got through talking to him that it could be saved, and I wanted to
save it or invest a little more money to save what we already had
in there, and that was my intent and purpose.
Mr. Kennedy. When you first put money in it, what did you re-
ceive as collateral for that money?
Mr. Brewster. I am not positive what we did receive at that time.
As I say that was done with the attorney, and I think that we got
a mortgage on equipment or something like that. I am not positive
what we got in the first part of it.
Mr. Kennedy. Do you know what arrangement with you was made
at all when you put the money up ?
Mr. Brew\ster. No, I don't."^
Mr. Kennedy. You do not remember what the collateral arrange-
ment was for the first $50,000 ?
Mr. Brewster. I don't know, sir. I presume it was a iiote on the
company at that time, but I know that they were in dire need of some
inunediate assistance and on that portion of the money we probably
took more or less of a gamble.
Mr. Kennedy. Mr. Brewster, I do not wish to keep harping on this
point, but if this is not a deal or arrangement that you, as the presi-
dent of the Western Conference of Teamsters, would know about,
what do you do as president of the Western Conference of Teamsters?
What do you know, without being facetious about it ?
Mr. Brewster. I tried to ex])lain this morning that these deals I
leave to the attorneys and the legal ])art of our organization and we
hire people to do that.
Then, naturally, I take their word for what they did. I am not com-
petent to make this kind of a deal and I do it through an attorney..
1318 IMPROPER ACTIVITIES IN THE LABOR FIELD
My big duties, and so forth, I think, probably where I might be of
very great value, I believe so myself without any ego, is to go out and
organize the job and get good wages and conditions and health and
welfare and fringe issues, and so on.
But I think that probably on this part of it, I do not know,
Mr. Kennedy. The lawyers or attorneys ordinarily would be em-
ployed to draw up papers, but as far as
Mr. Brewster. We have an attorney to protect the interests of the
western conference and we had our own attorney in it. I certainly
have confidence in him and I thought that he did a good job and I
still think he did.
Mr. Kennedy. Somebody has to make the financial decisions. An
attorney cannot do that, Mr. Brewster, and that should be your posi-
tion as chairman.
Mr. Brewster. That was my position, but you are talking about two
things here. You are talking about protection, and I think the pro-
tection of drawing it up is invested in the attorney.
Mr. Kennedy. I am talking about the protection for the union mem-
bers' dues.
Mr. Brewster. I know, the dues.
The Chairman. Let me ask you, Mr. Brewster, would you not make
the decision as to whether the collateral offered was adequate ? Would
that not be your responsibility ?
Mr. Brewster. I believe to a great degree it would be my final de-
cision, but I would have to probably consult other people to make
that decision.
The Chairman. There is no doubt about that. You would want to
consult and take into account any information.
Mr. Brewster. My first impulse on this situation, I think I ex-
plained this morning, was to not back up too far in an organizational
drive we are putting on in Canada and the positions of the men them-
selves.
I think that it worked out and we were lucky that it did work out,
but I think that it was money well spent.
The Chairman. Now, in making those decisions, you take into ac-
count, or you have to have information as to the nature of the col-
lateral and its value, and so forth, do you not?
Mr. Brewster. Yes, sir.
(At this point in the proceedings Senator Ives and Mundt entered
the hearing room.)
The Chairman. As to your attorney, the principal service he ren-
ders after you make the decision and come to a meeting of the minds
with those with whom you are having a transaction then he simply
prepares those documents necessary for signature to put it in legal
and binding form.
Is that not correct ?
Mr. Brewster. That is possibly true, yes.
The Chairman. All right.
Mr. Kennedy. Can you tell me this, Mr. Brewster: Who was
going to end up having control of the company? Is it the old owners,
Mr. Acheson, or the Western Conference of Teamsters ?
Mr. Brewster. Well, I am sure that the latter is not going to end up
in control.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1319
Mr. Kennedy. And the old owners were out, as I understand it.
Mr. Brewster. The old owners, I do not know whether they will
still be in it or not when the thing gets in a position where they could
be in it. I think that they still have stock and they will probably be
in it for that amount of stock that they have.
Mr. Kennedy. As I understand this affidavit, Mr. Brewster, they
were to put up as collateral, or whatever term you want to use, 60 per-
cent of the stock, is that right?
Mr. Brewster. I think that that was the figure.
Mr. Kennedy. Now, when the loan is repaid, is that stock returned ?
Mr. Brewster. I think Mr. Acheson has control of the stock or
will have control.
Mr. I^NNEDY. Would that not indicate, then, that it was a pur-
chase of the stock rather than just a loan ?
Mr. Brewster. I don't think it would be. I think that it is in this
position : I think that I read this statement of Mr. Acheson and it is up
for sale and he is trying to get it out. I don't know whether if he
sold that, whether these old owners would have control over it or not.
He made the statement here that :
the auditors say that the net after depreciation for 1947 would be about $86,000
plus $100,000 depreciation. I have talked to concerns —
and so forth, about selling.
I don't care if I make a dime on the deal.
Mr. Kennedy. Let me ask you this : After all of this, if you get your
money out, Mr. Acheson will end up owning the company, will he not,
or 57 percent or 60 percent of the stock. Does he not end up, under
that arrangement that you have made, owning the company ?
Mr. Brewster. He might possibly do that.
Mr. Kennedy. After the money is repaid to the Western Confer-
ence of Teamsters, if that is done, the stock is not returned to the com-
pany. You people still own the stock. He owns the stock ?
Mr. Brewster. He will have to own the stock, yes, sir.
Mr. Kennedy. That is a pretty good arrangement for him, is it ?
Mr. Brewster. I think that I go back to this statement that he winds
up with that he said :
I don't care if I make a dime on the deal.
Mr. Kennedy. He might not care about it, but it is pretty good for
him.
Mr. Brewster. As a statement in an affidavit, I think it is a pretty
good statement.
Mr. Kennedy. We have a letter here that throws a little light on it.
The Chairman. Mr. Brewster, the Chair hands you what purports
to be a photostatic copy of a letter addressed to you from Mr. Acheson.
Will you examine it, please, and identify it?
(The document was handed to the witness.)
The Chairman. Do you identify the letter ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. I think this sort of summarizes what the picture was
as of May 7, 1956.
Mr. Brewster. I think it does.
Mr. KJENNEDY. We can read it in or just make it a part of the
record.
1320 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. We are satisfied to have it made a part of the record.
The Chairman. It will be made a part of the record at this point.
It will be printed in the record at this point.
(The letter referred to follows:)
[Ail-mail, special diliwry]
May 7, 1956.
Strictly personal.
Subject: PIX.
Mr. Fkank W. Brewster,
Care of the Town House, 2961 Wilshire Boulevard.
Los Angeles, Calif.
Dear Frank : Anne told me this letter might reach you Tuesday at the Town
House.
I hate like the devil to have to write you this note telling you that PIX is in
trouble.
As you know, we got our fingers in this pie as of July 1, 1955, and at the end of
6 months — December 31, 195.5 — we wound up with an operating profit of $18,000
before depreciation. With depreciation of $36,000, we were left with $18,000 in
the red which wasn't too bad.
The 3 months ending March 31, 1956, show an operating profit of $25,125.15,
less depreciation of $28,009.86, or a loss of $2,884.71, which isn't too bad except
for the fact that the latter part of March and all through April the restrictions
not only in the prairie Provinces of Canada but also our States of Idaho and
Montana make it U)()k as though the loss will be somewhere around $30,000.
I had made arrangements with the Canadian Bank of Commerce to carry a
$50,000 overdraft as against accounts receivable. However, this has now hit
$90,000, due primarily to the necessity of buying approximately $40,000 worth
of licenses the first part of April.
The bank has gone along, doing a lot of hollering, but today Wirote PIX
ofiicially telling them this balance must be reduced forthwith, which means PIX
needs a minimum of $45,000 right away.
In order to protect your investment, would you or could you let us have that
amount, and I will issue the necessary preferred stock to cover?
You know, at first I told you I thought you were putting your money down a
rathole, but somehow or other I feel it can be pulled out of the hole this year,
and if you think it wise, would you call me and let me know upon receipt of this
letter"?
Incidentally, I have PIE nibbling at the possibility of buying the outfit to com-
pete with Consolidated. I am also toying with the idea of, possibly, making a
public issue and putting PIX on its feet financially, thereby protecting your
interests, all of which will take a few months to put together, if it can be put
together.
One last item. As soon as I hear from you, I am going to Vancouver and
raise h -, with the possibility of having to clean house, and will keep you
advised as to what progress (if any) I make.
Regards.
Yours very truly,
R. E. ACHESON.
The Chairman. At this point you may proceed to interrogate him
about it.
Mr. Kennedy. Just on another matter in connection with this, on
whether you have made any similar loans to any other companies,
are there any other than the Blackball Express Co, ?
Mr. Brewster. No. There hasn't been as far as the western con-
ference is concerned.
Mr. Kennedy. What about tlie Pacific Freight Line I
Mr. Brewster. That was an operation in California. There was
a loan made by the unions in that area to keep the freight line in
operation during the strike about 3 years ago or a little less. That
was a deal that was made without myself having anything to do with
it and it was made b}- the people in California.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1321
Mr. Kennedy. That was for $250,000 also?
Mr. Brewster. I think that it miglit have been that. I don't Imow
ihe exact figure. I notice in this letter or affidavit he said that, but
I presume that it was probably close to that. It was the Pacific
Freight Line and we had to have a company to haul freight, and so
forth, and it helped our strike and so they loaned him that and I am
positive it has all been i3aid back.
Mr. Kennedy. Is there not a provision in the international con-
stitution about loaning money that the maximum that you should loan
is $50,000?
;Mr. Brewster. There is a portion of the constitution that refei*s
to the international, yes.
Mr. Kennedy. It says, "Any union, the maximum that they can
purchase in bonds is $50,000."
Mr. Brewster. I don't know whether that referred to local unions
or not.
Mr. Kennedy. It says on page 38, article 11 :
Not more than $50,000 be invested in bonds of any one corporation, except
when the investment is in United vStates Government, State, county, or mnicipal
bonds.
The Chairman. Is there any authority in the constitution for buy-
ing stocks ?
Mr. Brewster. I don't think it refers to all of the unions, and I
don't see any language in here that would refer to them.
Mr. Kennedy. You can loan as much as you want, and there is no
limitation?
Mr. Brewster. I don't believe that there is a limit on it. I don't
think that there is.
Mr. Kennedy. I understood there was a provision in the Western
Conference of Teamsters constitution that states that anything that
the international states applies to the West-ern Conference of Team-
sters. Is there not such a provision ?
Mr. Brewster. That is where there is a conflict, I believe, in the
bylaws. On page 50, section 7, the latter part of it says that :
They shall function under the rules and bylaws laid down by the general
•executive lioard. The international constitution shall supercede the conference's
bylaws in the event of conflict.
Mr. Kennedy. You do not feel that this $50,000 provision applies ?
Mr. Brewster. I don't myself, and it might be construed that it
would. But I never looked at it in that manner.
Mr. Kennedy. Was Mr. Acheson on the Washington State Truck-
ing Association's negotiating committee? We had some discussion
about that this morning.
Mr. Brewster. lie was on the local negotiating committee. You
asked me the question, I think, if he was on the western conference's
negotiating committee this morning.
Mr. Kennedy. This is on the local level.
Br. Brew^ster. On the local level ; yes, sir. At the time I was talk-
ing to him, he was not on the negotiating committee of the organiza-
tion that would be on the other side of the fence.
Senator Goldwater. Mr. Chairman, could I ask a question ? Mr.
Brewster, in this affidavit of Mr. Acheson, about half way down on
the first page, it says, "Brewster handed me a check and I had him
1322 IMPROPER ACTIVITIES IN THE LABOR FIELD
make another check and this check was given to my attorney." What
was the amount of that other check ?
Mr. Brewster. I believe it was $100,000.
Senator Goldwater. Is that reflected in the total of $440,000 ?
Mr. Brewster. I believe it all is reflected in that.
Senator Goldwater. Do you not know ?
Mr. Brewster. I think it is.
Senator Goldwater. Can you not say "yes" or "no" ?
Mr. Brewster. Yes ; I would say it is.
Senator Goldwater. Fine. Do not say you think so. What was
that $100,000 for?
Mr. Brewster. It was put in there to keep the company running.
Senator Goldwater. It was given to an attorney.
Mr. Brewster. An attorney to go and make the deal ; yes, sir.
Senator Goldwater. Was that the attorney's fee for making the
Mr. Brewster. No, sir.
Senator Goldwater. Where did it go, into the company ?
Mr. Brewster. It went into the company.
Senator Goldwater. Let us see if it did. On the second page, Mr.
Acheson testifies to the fact that two cheeks for $100,000 each were
drawn and given to Sam Bassett, and the third check for $50,000 was
drawn to Bassett. That $250,000 went into the business, did it not ?
Mr. Brewster. Yes, sir.
Senator Goldwater. Now, where did the $100,000 go that you gave
toDobrin?
Mr. Brewster. It still went into the business.
Senator Goldwater. But that $100,000 is not in the total of $450,000.
So if we take your word that the $100,000 went into the business, what
you did was invest $540,000 instead of $440,000; is that correct?
Mr. Brewster. I don't think the figures come out that way.
Senator Goldwater. You ought to know. You were the head of
this organization. I just want to remind you that in 1955 you reported
an income of about $1,600,000 and expenses of around $800,000. I da
not care if you just get in there once a month, I think that the head
of an organization would know where over 50 percent of the remain-
ing capital went in 1 year.
It is not just weekend petty cash. What is the $100,000 for that
you gave to Mr. Dobrin ?
Mr. Brewster. It went in for the same purpose of running the com-
pany.
Senator Goldwater. Then you put $540,000 into it instead of
$440,000. We can total $440,000 and that is easy. You have got
$50,000 that you gave to Mr. Acheson. That is the original check.
Then, you have $200,000 made out in 2 checks, plus one of $5,000 and
then you have $140,000 that you gave against some equipment, $175,000
worth of salable equipment.
Then, you authorized the sale of $45,000 worth of preferred stock,
which totaled $440,000. You have not accounted for the $100,000
that you gave the attorney.
Mr. Brewster. Well, the books will show. I don't know about it.
Senator Goldwater. You should know, Mr. Brewster. I cannot
sit here and accept that. I can accept a lot of your confusion about
IMPROPER ACTIVITIES IN THE LABOR FIELD 1323
smaller amounts but I cannot accept the president of an organiza-
tion coming in here and telling me that he does not know where over
half a million dollars went.
Mr. Brewster. I would say it was $440,000.
Senator Gold water. If you say $100,000 was made out in another
check, then $540,000 is what we are talking about.
Mr. Brewsiisr. I say that check was included in the $440,000.
Senator Goldwater. It cannot be. The arithmetic does not come
out that way. You add it up yourself and see what you get.
Mr. Brewster. Well, this is the way I read this affidavit :
I have been thinking about this for several months, and I suddenly think
that I struck lightning. We can trust you and I want you to take $50,000 and put
it in the bank of the Pacific Intermountain Express.
Senator Goldwater. That is the $50,000 and we agreed to that.
Mr. Brewster. Yes, sir.
Senator Goldwater. Now, you go on and read what you said fur-
ther.
Mr. Brewster —
And I had him make out another check and this check was given to the
attorney, E. G. Dobrin of Bogle, Bogle & Gates, as trustee and they put the
money in Pacific Intermountain Express.
Senator Goldwater. You say that was a check for $100,000. Wliat
is the $100,000 for ? It does not go into the operation of the company.
Mr. Brewster. I think it is all the same check.
Senator Goldwater. You mean $100,000 is in the $50,000 check?
Mr. Brewster. The $50,000 check
Senator Goldwater. You have testified that $50,000 was a check
that you wrote to go in the business and we are not arguing about that.
I want to know what the next check you report as having made out
went for.
Was it given to Mr. Dobrin for attorney's fees?
Mr. Brewster. No, sir.
Senator Goldwater. Was it given for getting this deal across?
Mr. Brewster. No, sir.
Senator Goldwater. Then, you put $540,000 in the business instead
of $440,000.
Mr. Brewster. I believe — and I haven't any of the records here and
I have to refer to records.
Senator Goldwater. If you had a small amount, I might agree with
you, but this is over 50 percent of what you had left out of the
$1,600,000 in 1955. Now, let us not kid ourselves. You know where
it went and what it went for and why do you not tell us ?
Mr. Brewster. I don't think, and I am positive that there wasn't
another $100,000 that went for anything. I would like to ask
Senator Goldwater. You testified, sir, that you wrote out a check
for $100,000 and gave it to Mr. Dobrin. Now, what was the $100,000
for? — $100,000 is not something that you just write out every day, it
is a lot of money. It seems to me that the president of the western
conference would know what it went for.
It comes out $540,000 the way I add it up.
Mr. Brewster. Could I ask, please, to refresh my memory even of
these amounts, because they came at different times?
Senator Goldwater. Wliat is that ?
1324 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Can I ask to refresh my memoiy because these-
checks were not ma.de out at the same time?
Senator Goldwater. They were. You said,
I wanted to take this check for $50,000 and put it in the bank for Pacific Inter-
muuntain Express and Brewster handed me a check. I had him make another
check and this check was given to my attorney.
Did Mr. Acheson have you make out that check?
Mr. Bkewstei;. I am not sure and I don't think that he used the
first check.
Senator Goldwater. If he did not use the first clieck, wliere did
it go ? Did he tear it up or give it back to you, and what did he do
with it ? All I want to know is what the $100,000 was for.
Mr. Brewster. I am trying to find it, too, Senator, and I would
like to a,sk
Senator Goldwater. You are the one who injected it. I did not
make that figure up. I asked what the other check was and you told
me it was $100,000.
Mr. Brewster. Could I do this, if you want to get it
Senator Goldwater. I think that you know what that $100,000 went
for now, did it go into the business ?
Mr. Brewster. Everything that I gave to them went into the bus-
iness.
Senator Goldwater. So we are talking about $540,000.
Mr. Brewster. Would you please — can I have the privilege of ask-
ing a question ?
Senator Goldwater. You can answer me yes or no on that, sir.
Mr. Brewster. I don't think it was $540,000.
Senator Goldwater. Add it up and see what you get.
Mr. Brewster. Could I ask this question and I think that we
ca.n get
Senator Goldwater. I have asked you a question. Now, I will play
a game with you. You can ask me a question if you will answer me.
Mr. Brewster. I want to ask the auditors that you have what they
found and I think it is $440,000.
Senator Goldwater. Are these your auditors ?
iNIr. Brewster. They are yours, but won't you take their word for it ?
Senator Goldwater. T will ask them if they get the same addition.
Mr. Kennedy. It is $440,000.
Senator Goldwatf^r. You did not put the $100,000 down ?
Mr. Brewster. This can be confused but I know there is $440,000'
and I think that is tlie figure that you want.
Senator Goldwater. Where is the $100,000?
Mr. Brewster. There isn't another $100,000.
Senator Goldwater. You just said there was $100,000.
Mr. Brewster. If I said that, I didn't understand you and I am
mistaken.
Senator Goldwater. You are mistaken in $100,000? Let me start
over again. You said that testimony is that another check was made
out, and this check was given to an attorney, Mr. Dobrin. I asked
you what the check was and you said $100,000 and now how much was
the check ?
Mr. Brewster. I do not know of this check. I remember at the
time that first we put in $50,000 and then another $100,000 and that
IMPROPER activitif:s in the labor field 1325
is where my memory o;ot mixed up in this type of a statement. I asked
the auditors that looked at the books, and there is $440,000 and so
the other was just a mistake in saying what $100,000 you referred to.
Senator Goldwatei?. 1 am referring to the $100^,000 that you re-
ferred to.
Mr. BRF^ysTER. There isn't any other $100,000. It is a myth.
Senator Gold water. The lirst statement you made was in error?
Mr. Brewster. I misunderstood your question.
Senator Goldwater. 1 was only reading the testimony that you
made out another check and the check was given to an attorney, and
now, was Mr. Acheson wrong in testifying that another check was
made out ?
Mr. Breavster. If all of these figures come out the way you say it
does, he was wrong in making the statement.
Senator Goldwater. Now to what were your attoi-ney's fees that the
western conference i:)ays in a year ^
Mr. Brewster. The attorney's fees, retainer, you mean ?
Senator Goldwater. Yes.
Mr. Brewster. We have a retainer of $10,000 a year.
Senator Goldwater. To how many lawyers?
Mr. Brewster. We have only one.
Senator Goldwater. Just one lawyer?
Mr. Brewsitir. Yes, sir.
Senator Goldwater. Did this one lawj'-er handle this whole deal
for the $10,000, or was he paid extra?
Mr. Brewster. On work of this type he sends in a lull.
Senator Goldwater. How much Avas the bill ; do you remember ?
Mr. Brewster. No, sir ; I don't.
Senator Goldwater. Was it $10,000 ?
Mr. Brewster. Oh, no.
Senator GoldWx\ter. $5,000 ?
]\Ir. BiiEAVSTER. He works cheaper than any lawyer I know.
Senator Goldwater. Well, I am not a lawyer, but I would not work
for your outfit cheaper than any other lawyer, I can tell you that.
Mr. Brewsi^er. We wouldn't hire you.
Senator Goldwater. I know you would not. We disagree too fun-
damentally.
Now, I want to ask you another question. Do you think it is proper
for labor organizations to get into business that are competitive with
people they have made collective-bargaining agreements with?
Mv. Brewster. In this case I think circumstances sometimes alter
general opinions. Ninety-nine percent, I would say no. But there also
might be that one exception, and this is one of those exceptions, and
this morning I think that I explained it.
Senator Goldwa'it:r. Let me ask you a philosophical question: Do
you think it is proper for labor unions to be in competition with people
that they are doing collective bargaining with in any instance ?
Mr. Brewster. No ; I don't.
^ Senator Goldwater. I agree Avith yoiL Do you think that legisla-
tion should be considered that would prevent labor unions from becom-
ing competitiA'e in the economic fields in which they work with
management.
Mr. Brewster. Generally, I would say no.
Senator Goldavater. But you just agreed that they should not do it.
1326 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Yes, sir ; I do. I agreed to that. The same thing
goes, that I think in isolated cases where something might prevail
such as this situation here. I think that there should be some excep-
tion made on that.
Senator Goldwater. Can you not see the dangers that could accrue
to this economy if labor organizations, who have now grown to rather
sizable proportions — and I do not know exactly what the welfare
funds they have to invest total, but I know it is over $4 billion, with
annual income from dues alone in the neighborhood of half a billion
dollars — if the labor movement begins to get into the management
field and removes from the management field, management itself, and
we wind up in this economy of ours with only one segment?
Mr. Brewster. My own personal opinion is, I agree with you. I
think labor has got a job to do in the field of labor and not in the
business field of this country.
Senator Goldwater. Mr. Brewster, I could not agree with you
more. I am glad to hear you say that.
Mr. Brewster. I am glad that you and I agree on that.
Senator Goldwater. We can agree on that all day.
Mr. Kennedy. Mr. Chairman, this morning we had a witness that
we called to be a short witness, and he had been out sightseeing in-
stead of being here, and I was wondering if we could call him now for
just a minute. That is Mr. Sylvester.
The Chairman. Mr. Sylvester, will you come around, please?
You do solemnly swear that the evidence you shall give before this
Senate select committee shall be the truth, the whole truth, and nothing
but the truth, so help you God?
Mr. Sylvester. I do.
TESTIMONY OF HOWARD SYLVESTER
The Chairman. Please state your name and place of residence and
your business or occupation.
Mr. Sylvester. My name is Howard Sylvester, and I live in Seattle,
Wash., and I am in the insurance and public-relations business.
The Chairman. Mr. Sylvester, have you discussed your testimony
with the members of the staff, and you know generally the line of
questioning to expect?
Mr. Sylvester. Yes, sir.
The Chairman. Do you know the rule of the committee that you
are entitled to have counsel if you desire? Do you waive counsel?
Mr. Sylvester. I waive counsel.
The Chairman. All right, proceed.
Mr. Kennedy. Mr. Sylvester, would you tell the committee a little
bit of your background and what your business is at the present time
and where you live ?
Mr. Sylvester. I live in Seattle, Wash., and I have for 25 or 26
years. I have been a licensed insurance man since May 1, 1935. I
have a reasonable amount of fire insurance on the books now.
Mr. Kennedy. Now, during the period 1955 or 1956 — and you will
have the exact date — did you have a conversation with Mr. Frank
Brewster regarding the right-to- work initiative?
Mr. Sylvester. Yes, sir ; I did. A year ago last month — I believe
it was the middle of February — and I discussed handling the cam-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1327
paign in the State of Washington against a proposed right-to-work
Mr. IvENNEDY At that time was your position going to be one of
gathering together the various forces in the communitv to trv to
interest them m opposing this right-to- work initiative «
Mr. Sylvester. Yes, sir.
Mr. Kennedy. Now, Mr. Sylvester, did you go out then and attempt
to organize a campaign? ^
Mr. Sylvestor. I immediately set out to get a large group of busi-
ness people and others as a cross section of our population in the State
to serve on a citizens committee. We called it "The Citizens Com-
mittee lor the Preservation of Payrolls."
Pa^^rouf r^^^^' ^^^^ Citizens Committee for the Preservation of
Mr. Sylvester. Yes, sir.
iJu'- /^7^^1f-/ow, did you receive some donations from various
the te^nster^? various other labor organizations other than
Mr. Syli^ster. I received a check for $750 from the Yakima Cen-
which I did ''^^^ instructed by the teamsters to return it,
yoE'^i^tle S r ^^^ ^^^^^^ ^- ^^^^' - -h- fi-t -tructed
weft^rif SnSce"'" ^^^^^ '' ^"^^"^^' --^ary-treasurer of the
check ?^^''''''''''''' ^""'^ '^^""^ '■^^''''' ^'^ ^'^ "''^''"^^ y«^ t^ return the
Mr. Sylvester. As I recall, I kept the check for a day or two be-
cause he was out of town as was"^ Mr. Brewster. TliL I called
voISiVI'^'^ ''"' ^^ '^' ^-^^ ^ ^^^^ ^^^ tl^^t numerous others had
He said, ''^^, Brewster wanted that check mailed back." He said
they wanted to contix)! all finances of the committee and it would pre
being pi?^S?;^;:jed ^ '"^^"^ '' ^^"^^^^^^ '^'' ^^^^^ ^-^^ ™ot
Mr. Kennedy. Did he say anything at that time, Mr. Sweenev at
that time or any other time, about the fact that this might be rpo^iti-
cal wea^^on that the teamsters would be interested in usiTig if theS l
to-work initiative was defeated ? *=
Mr. Sylvester. Mr. Sweeney made it a point that there was evi
dence in the State of Washington that this big guy began paXuTar
effort to defeat what then became known as inltrative foS wi Ifvin^
them more^influence or they could use more influence by beincfsSccis"
f ul in the State of Washington to defeat initiative 198 ^
Mr Kennedy. Did Mr. Sweeney ever express to vou at a later time
that Brewster had gotten -mad as hell" about the $750 check?
Mr. Sylvester. Whether he said "mad as hell" I can't honestlv
state, but lie said he was^^touchy as the dickens" about t and ot to
M Z.^''V^ "'°''- , ^°" r"" ^"" ^'^li^l^ the position I w^ in I
felt when they engaged me along in February that my iob was to <ret
as much volunteer help to defeat what later became inildtive 198 that
was the number they gave it, and also to get as mucli monev from
89330— 57— pt. 4 15
1328 IMPROPER ACTIVITIES IN THE LABOR FIELD
various people through the State Avho I felt also wanted to defeat it
and would readily submit funds, $25 or $50 or $100. Many expressed
themselves as willing to do it.
And so, periodically, I would phone Sweeney because INIr. Brewster
was out of town, ancl I would say, "John, this thing is going." He
didn't complain about the money I was spending, and I would enter-
tain people, and he just said this thing is getting out of line and we
are spending much more money than the original $600,000 that he
told me they were prepared to spend.
Mr. Kennedy. Did he say anything then about the teamsters, that
if all the money came from the teamsters they would be a great politi-
cal power in the State ?
Mr. Sylvester. I can't honestly say "Yes" to that. There was a
generalization and he said, "We will have the candidates coming
around this fall and it will ])ut us in an influential position."
Mr. Kennedy. If the money to defeat the initiative comes from the
teamsters ?
Mr. Sylmsster. It was my understanding and every check that I
received myself was on Western Conference of Teamsters.
Mr. Kennedy. I understand that. When you were returning this
check or any other check, did Mr. Sweeney ever express to you the
fact that Brewster did not want any other checks in this because he
wanted the credit for defeating this initiative 198 to go to the team-
stei^s ?
Mr. Sylvester. I would say "yes" on that question. I would an-
swer it "yes."
Mr. Kennedy. You express it in your own words rather than my
words. '\'\niat did Mr. Sweeney say to you about that?
Mr. Sylvester. That they wanted to control this committee com-
pletely.
Mr. Kennedy. Did he say anything again, or why did he say that
they wanted to control the committee for the defeat of initiative 198?
Mr. Sylvester. Well, it would place them in a dominant position
in our State, particularly in the union field. There is a division be-
tween the AFL and the teamsters : there is considerable friction and
animosity. Brewster and Sweeney won't talk to the president of our
AFL, and that is the only way I can explain it. They have their own
committee, and the teamsters have the citizens committee.
I hope I answered it, sir, if I understand it right.
Mr. Kennedy. We will go on a little bit. Did you have a dispute
with Mr. Bre\vster or the teamster organization regarding your
fee?
Mr. SYL^^3STER. Yes, sir.
Mr. Kennedy. Now, you had some correspondence, did you not,
indicating what the fee should be or might be ?
Mr. Syl\t<:ster. I requested a letter of designation or authority
from the secretary-treasurer of the western conference. That would
be Mr. John Sweeney. I don't think that I received it the vei^ day
I asked for it.
It seems that I came back a couple of days later and Sweeney said,
"Here's the letter, Sylvester." and in the letter he designated me as
secretary of the citizens committee and said — or he requested in the
letter that the bearer get all necessary help.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1329
I was to show that to the various business agents throughout the
State when I was going aro\uid.
Mr, Kenxedy. Did you have a dispute with the teamsters, certain
officials in the teamsters, regarding your fee after this initiative was
defeated ?
Mr. Sylvester. Yes, sir.
Mr. Kenxedy. And did you expect that, in additon to your saLary,
you were supposed to get a bonus for the work that you had done?
Mr. SYL^•ESl'ER. We referred to it as a bonus or a fee. The first day
I met ]Mr. Sweeney
Mr. Kexxedy. You had expected to get that?
Mr. Sylvester. I expected and I was offered $1,800 as a settlement
fi'om Mr. Brewster as late as, I think, 4 weeks ago. He had his secre-
tary call me to come down there and he said, "Sylvester, bring your
attorney because we will have an attorney."
^Ir. Kexx'edy. You thought that you deserved $10,000, is that
right ?
Mr. Sylvester. Exactly.
Mr. Kennedy. Now, you had some of these documents in your pos-
session and was your office broken into?
Mr. Sylatster. The office in room
Mr. Kennedy. After the initiative 198 had been defeated and you
had this dispute with the teamsters, was your office broken into at
that time ?
Mr. Sylmcster. Yes, sir.
Mr. Kennedy, Now, what occurred ?
Mr. Sylvester. On November 13, 1 went up to the Teamsters' Hall,
hoping to see Mr. Brewster. I submitted two statements to Mr,
McDonald Avho I Avould identify as the auditor or bookkeeper and
the man who every Friday' gave me a weekly check.
I brought two statements up, one calling for $3,514.20 which was
termination pay for the personnel I had on the citizens committee
whicli took care of the Spokane office, and took care of the Seattle
office.
So there was a statement for $3,514.20, and then on the identical type
of stationery, I submitted a fee calling for $10,000. I handed it to
Mr. ]\IcDonald and he went upstairs, and as I recall he said, "Sylvester,
come back right after lunch and I will have your check."
I came back and received a check for $3,514.20 and this is a photo-
static copy of it. That took care of tlie closing statements, the office
and supplies,
Mr. Kennedy'. I do not want to get into every detail about this,
and all I want to do is just have you answer my questions about it.
Did you receive a salary as j-ou went along, and you received a
salary ^or the work you did, and then there was a dispute between
you and the teamsters ; is that right ?
Mr. Sylm^ster. Right.
Mr. Kennedy. About certain other moneys that you felt that you
were due, and they felt were not due you, is that right ?
Mr. Syi.vester. Correct.
Mr. Kennedy, That is all I want to establish. Now, during this
period of time, was your office broken into? Would you answer the
question ?
1330 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Sylvester. The day after this statement was issued I came
back to the office around 3 : 30 or 4 o'clock and my secretary was
standing there in tlie office alongside of a phone that was on the floor
and she said, "Isn't this awful i Men from the teamsters promotional
league came in and I asked them not to take anything until they
discussed it or reviewed it with you and they stripped the office of
every tiling."
Mr. Kennedy. Did they go through your files at that time ?
Mr. Sylvestek. They took everything. The office was absolutely
bare and she didn't have a chair to sit on. They took my insurance
license and my real-estate license and all of my personal correspond-
ence of every type and description.
Senator Mundt. Did you not swear out a warrant to have them
arrested ?
Mr. Syl^^ster. No, I did not. It was this way : They didn't break
the door. They came in and brushed by her and then took things.
I phoned up there and I told them that there was going to be some
police or legal action.
Mr. Kennedy. You phoned up where?
Mr. Sylv-ester, I phoned up there.
Mr. Kennedy. Up where?
Mr. Sy'lvester. To the teamsters' office.
Mr. Kennedy. "Wliom did you talk to?
Mr. Sylvester. I talked to McDonald.
Mr. Kennedy. AVhat did you tell him ?
Mr. Syl\^si'er. I told him to the best of my knowledge what hap-
pened and what I just told you. He said, "I'm sorry it happened,
but neither ]\Ir. Brewster nor anybody around is available right now.''
I said, ""I want that back." And about a week later I got all of my
personal things back excepting the one letter, the letter from Mr.
Sweeney, designating me as executive secretary. They stole that.
Senator Mundt. Then they broke into your office by daylight ? The
door was open and they did not break down the door, but they came
in and brushed past your secretary in the middle of the afternoon and
stripped your office ?
Mr. Sy^lvester. Over her protests.
Senator Mundt. And took things out of your files ?
Mr. Sy^.\'ester, Took the files and all.
Senator Mundt. Took the files and all ?
Mr. Sylvester. Yes, sir.
Senator Mundt. And took the secret ai-y's chair?
Mr. Sylvester. Yes, sir.
Senator Mundt. And took the licenses ?
Mr. Sylvester. Yes, sir.
Senator Mundt. Took your typewriter ?
Mr. Sylvester. Everything.
Senator Mundt. The typewriter ?
Mr. Sy^lvester. Yes, sir. I wish to make it clear that they supplied
the bare basic thing's for the office. They were entitled to take that but
not my personal files and correspondence from various people through-
out the State and all of my personal and legal matters and dailies
from my insurance policies, even.
Senator Mundt. Was this the equipment they had supplied ? Did
it belong to them ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1331
Mr. Sylvester. Yes, sir.
Senator Mund'j-. So that what they actually took from you were
your personal files?
Mr. Sylvester. And the letter from Mr. Sweeney.
Senator Mundt. Your insurance ledgers ?
Mr. Sylvester. Yes, sir.
Senator Mundt. And your personal private business ?
Mr. Sylvester. Yes, sir.
Senator Mundt. And your account books ?
Mr. Sylvester. Yes, sir.
Seiuitor Mundt. Well, if they broke into your office or came into
your office without breaking in and forcefully removed these files that
you need for your business records, you certainly had a right to swear
out a warrant to have them arrested, it would seem to me, even though
the furniture they repossessed might have belonged to them.
Did you notify the police?
Mr. Sylvester. No, I was attempting to get it back and I felt that
there would be an equitable understanding of some kind. I never
got a chance to see Mr. Brewster until perhaps 4 weeks ago when
he offered me $1,800 as a settlement.
Senator Mundt. For the material that they had taken ?
Mr. Sylvester. No, my fee.
Senator Mundt. Did they subsequent!}- return your insurance
ledgers and your files and your record books ?
Mr. Sylvester. I went and got them from Mr. McDonald in the
Teamsters' Building.
Senator Mundt. What didn't you get, and what did they refuse
to let you have ?
Mr. Syl\^ster. I can't find the letter from Mr. Sweeney desig-
nating me as executive secretary and I had considerable literature
relative to the riglit-to-work that I had built up, a library and they
kept that.
Senator Mundt. You tliink the important document that they were
after and kept was the letter of designation ; is that it 'i
Mr. Syt.vester. I feel so.
Senator Mundt. You are sure that it was in your file ?
Mr. Sylvester. I am positive.
Senator Mundt. When the file came back, it was gone?
Mr. Sylvester. That was one of the first things I looked for.
Senator Mundt. I would not thmk the literature would be very
important. You had defeated the initiative. That was a dead duck.
The letter of designation, I can see, would have some veiy definite
value to you, and there was a dispute as to whether or not you were
to get a fee. Did that letter mention the fee you were to get ?
Mr. Sylvester. No, sir.
Senator JMundt. Did you have anything in writing from them at
an}' time, any contract or any exchange of correspondence as to the
fee you were going to receive ?
Mr. Syla^ster. Nothing in writing, sir.
Senator Mundt. All your arrangements were entirely verbal?
Mr. Sylvester. Yes, sir.
Senator Mundt. Then how would this letter of designation have
any value to them or to you, either, if it did not mention a fee?
1332 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Sylvester. I feel that it would be bindino- in that I was desig-
nated by the secretary-treasurer of the western conference as their
executive secretary. I would feel that that, through the law of
agency, would make me an agent of theirs.
Senator Mundt. Do you mean if there was any dispute over
whether or not vou were actually appointed by them to do any work,
that you had something in writing that would so specify; is that it?
Mr. Sylvester. That would be my feeling. I think that was the
importance of the letter.
The Chairman. Any further questions?
Mr. Kennedy. I have finished.
The Chairman. Senator Ives? - .
Senator I\tss. I would like to find out what the vote was on this
proposition he talked about. ,
It was voted on the last election, I take it. What was the vote?
I miderstand it was carried.
Mr. Sylvester. We defeated it.
Senator Ives. You defeated it ? , ^ , o . t i
Mr SYL^^5STER. Bv a little better than 2 to 1, Senator. I do not
recall the exact figures. It was a little better than 2 to 1.
Senator I^^ss. How much influence do you feel that you exercised
in the matter of defeating it?
Mr SvaAESiTSR. I believe our citizens committee was very instru-
mental We had a very effective committee. We all worked very
hard o-ot wonderful assistance throughout the entire State, from a
cross'section of our citizenry, and I would say that we were a dominant
factor in defeating the right to work.
Senator Ives. You never received any criticism, I take it, from the
teamsters regarding the work you did ; is that correct?
Mr Sylw.ster. Periodically, I phoned and asked Mr. Sweeney how
he thought things were coining along. He said, "You are doing a good
iob, bov. Keep it up."
Senator I\ms. It is very peculiar, then, that they would turn on you
the way they did if you had not received criticism. ^Y\mt is the
reason they did that to you ? They must have had some reason for it.
Mr S^^^^^^STER. I am at a loss to explain it completely, because I
cannot read their minds. But if there was disagreement or friction
developed as soon as I submitted my statement of fee for $10,000, they
were hio-hly aware that I was to aet a fee or bonus, and have offered
a partial settlement, that would be one thing that goes through my
mind. But I cannot imagine where this large amount of money was
spent, where thev are going to chisel me down to $1,800.
Senator Ives. Apparently you have the answer yourself, and i
would like to know what the answer to it is.
Mr Syl^tester. I am sorry ; I do not know.
Senator Mundt. Could you tell us, Mr. Sylvester, how much money
your committee spent to bring about this miscarriage of justice in that
State? . J. M ^ A
Mr. Sylvester. Our committee, as far as funds are concerned, we
did handle the advertising. My committee had either $41,000 or
$43,000 that we spent. , . .
Senator Mundt. The reason I asked was I thought you said, or you
may have made reference to it earlier that in talking to Sweeney, he
IMPROPER ACTIVITIES IN THE LABOR FIELD 1333
said, ''Our rates of expenditures are going to exceed the $G00,000 we
have set aside for this."
Did you use that figure ?
Mr. SYL^'ESTER. I did, sir.
Senator Mundt. Will j'ou explain that?
Mr. Sylvkster. Well, the day that I was engaged, we naturally
reviewed what was going on. The proponents of a right-to-work
endeavor had had considerable publicity relative to their endeavor.
At that time, there was some possibility that it would go over.
I asked them what they were prepared to do about it, in the light
that the other committee was so active. He said, or he may have said,
"We are prepared to spend $600,000."
Then at a later date, Sweeney said, "The way thing's are going, we
will greatly exceed that figure."
Senator Mt^ndt. How nuich did you actually receive? You said
they paid you a monthly salary.
Mr. Syl\'ester. Weekly, sir. The first 3 weeks it was $150 a week,
and thereafter it was $200 a week.
Senator Mundt. And the understanding was that if it were success-
ful at the end, vou were to get an additional pavment or a bonus of
$10,000; is that' right?
Mr. Syl\t.ster. That was my understanding.
Senator Mundt. We can assume that their lawyers are going to
be busy for awhile doing other things. Maybe you can go after them.
Mr. Sylvester. I certainly haven't forgotten.
The Chairman. Senator Goldwater?
Senator Goldw^ater. Mr. Sylvester, this morning Mr. Brewster tes-
tified in answer to a similar question to the one just put you by Senator
Mundt, the the teamsters spent around a half million dollars to defeat
the right-to-work bill in Washington. Would you say that he was
correct ?
Mr. Sylvester. I can't say he is correct.
Senator Goldwater. Is he incorrect ?
]Mr. Syl\t:ster. Incorrect.
Senator Goldwater. He would be incorrect. Let me ask you : In
view of the fact that we have evidence here that shows that $479,505
went to a Seattle advertising and public-relations man by the name of
Kyan, would a figure of over $400,000 be a correct figure?
Mr. Sylvester. For advertising only, I think that could be.
Senator Goldwater. That is, against the right to work.
What I am trying to get out of you, because you were very active
in this campaign, is how much was spent by those people against the
right-to-work measure in Washington.
Mr. Sylvester. Greatly in excess of $600,000.
Senator Goldwater. Greatly in excess. To your knowledge, how
much did the AFL-CIO put into it?
Mr. Syi.vester. The AFL-CIO had what they called the United
Labor Advisory Committee, and they told me personally that they
spent $141,000.
Senator Goldwater. How much did the UAW-CIO put into it?
Mr. Syi.vester. I do not know, si r.
Senator Goldwater. Do you know if they put anything into it?
Mr. Syl\^ster. I believe they put money in through the United
Labor Advisory Committee.
1334 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Goldwater, But you do not know how much ?
Mr. Syl,\t:ster. No, not that individual group. But Ed "Weston,
the president, told me they spent $141,000.
Senator Goldwater. You were active in this campaign for the en-
tire length of the campaign ?
Mr. Sylvester. Yes, sir.
Senator Goldwater. You got rather well acquainted with the whole
thing, did you not ?
Mr. Syx,a"ester. Yes, sir.
Senator Goldwater. How much would you say was spent, in round
numbers, to defeat this measure in Washington ?
Mr. Sylvester. In excess of $1 million.
Senator Goldwater. How much in excess would you say ? A mil-
lion and a quarter?
Mr. Sylvester. I would say just over a million. Perhaps $1,080,-
000, I think, could be established as a proper figure.
Senator Goldwater. Do you know how much money was spent by
the proponents of this measure ?
Mr. Sylvester. I don't
Mr. IvENNEDY. Could I interrupt here ?
Mr. Sylvester. I don't know exactly.
Mr. Kennedy. I think we must establish that you should not answer
any questions that you do not know or have information about, when
you are answering these questions.
Mr. Syl\tester. I cannot answer that exactly, Senator.
Mr. Kennedy. I talked to him about these figures before, and he
didn't seem to Imow the figures on the $1 million, and had no sub-
stantiation for them. I don't want figures to go into the record where
the witness doesn't know.
Senator Goldwater. I believe I asked him in round numbers. I
was not trying to pin him down. I will ask the same question again
about the moneys spent by proponents. Would you make a measured
guess in round numbers '.
Mr. Sylvester. I could not answer it exactly, but it must have been
in excess of $150,000.
Senator Goldwater. So the relationship was someplace around 8.5
tol.
Mr. Syx,vester. I have heard the figure or ratio of 8 to 1 mentioned
by Mr. Pollock at one time, and I think he has so stated it. He was
the chief proponent.
Senator Goldwater. Mr. Pollock ?
Mr. Syl\'ester, P-o-l-l-o-c-k. He used that in an expression "ap-
proximately 8 to 1."
Senator Goldwater. That is all I have.
The Chairman. Are there further questions?
Mr. Kennedy. You say that more than a million dollars was spent
to defeat initiative 198. Do you have any figures that you have seen
or that you have examined that allow you to arrive at that figure?
Mr. Syl\tester. I am satisfied
Mr. Kennedy. I am not asking whether you are satisfied. You
might be satisfied, but we want to know what the figures are. If you
don't know the answers to the questions, don't answer.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1335
Do you know ? Have you seen any figures that indicate to you how
much money was spent to defeat initiative 198 other than the $47,000
or $43,000 that you know, yourself ?
Mr. Syl^-ester. Mr. liyan, the advertising man, I have had hmch
with him, and saw him once a week during the campaign. I am satis-
fied that at lunch on 1 or 2 occasions he generalized that it would be
in excess of $350,000, advertising only.
Mr. IvEKXEDY. Then where do you get to the million dollars?
Mr. Syl\-ester. I am assuming all segments of labor. Mr. Weston
told me $141,000 specifically.
Mr. Kennedy. All right. That is $500,000. Where do you get the
other $500,000?
Mr. Sylvester. Those are specific figures. The Seattle Central
Labor Council had an active campaign. I could not state exactly
what it was.
Mr. Ivexnedy. Mr. Ryan was doing work for the teamsters. That
is $350,000 plus the $150,000 of the other man. That gives vou up to
$500,000.
We don't have the figures ovirselves, other than what the teamsters
spent. I want to make sure that we are not putting figures in here
saying that it was testified before the committee that $1 million was
spent when we don't have any figures to indicate that.
Mr. Sylm^ster. Senator, in every city of any size in the State of
Washington, there was considerable advertising
Mr. Ivenxedy. But that it not the question, Mr. Sylvester. We
just can't take it that it was considerable, that it looked like there was
a lot of work being done. I don't want to appear unfair.
Mr. Sylvester. I could not give you the figure.
Mr. Kennedy. Thank you.
The Chairman. AVhat j-ou have given is your estimate from what
you observed and from information you have I
Mr. Sylvester. Yes, sir.
The Chairman. Proceed.
Senator Ives. Mr. Chairman, I would like to ask Mr. Sylvester one
question, at least, and then make an observation.
Is there any limitation on campaign contributions dealing with
propositions of this nature in the State of Washington?
Mr. Syl\tester. Not to my knowledge, sir.
Senator Ives. Then now law, apparently, was violated ; is that cor-
rect?
Mr. Syl\'ester, No, sir ; not to my knowledge.
Senator Ives. I think it should be pointed out, Mr. Chairman, that
this line of questioning of Mr. Sylvester does not necessarily mean
that all of us here are in favor of right-to-work laws. I happen to
be opposed to them myself.
The Chairman. Any other Senator may declare himself for or
against. We cannot settle the issue here, so let us proceed.
Senator Goldwater. I did not know that was necessary.
The Chairman. We will proceed.
Mr. Kennedy. That is all of Mr. Sylvester.
The Chairman. Thank you very much, Mr. Sylvester.
(Present at this point: The Chairman and Senators Ives, Mundt,
and Goldwater.)
1336 IMPROPER ACTIVITIES IN THE LABOR FIELD
TESTIMONY OF FRANK W. BKEWSTER, ACCOMPANIED BY HIS
COUNSEL, JERRY N. GRIFFIN AND JOHN K. PICKENS— Resumed
Mr. Kennedy. I am goin^- to a new matter, but I thought maybe
3^ou wanted to comment on Mr. Sylvester's testimony.
Mr. Brewster. I certainly hate to take up the time of the committee,
but I would like to just make a few brief remarks.
The Chairman. Granted.
Mr. Brewster. I did not know Mr. Sylvester until he came into
my office. I know his brother. His brother was a representative in
the State Capitol. I know him real well, and from his brother, I
took him for face value.
He had already been down and was giving- me some information
on the people that proposed the right-to-work. He said he had a
chance to work there, but he wanted to work for us. So I just took
the backgromid of coming from a very fine family, and I think he is a
very fine man himself. I haven't any animosity against Howard
Sylvester.
We thought that we were being a little evasive, probably, doing
something that the public wouldn't find out about, so we formed this
so-called committee. I learned something there, and I learned it be-
fore, that after more than one person knows something, it ceases to be
a secret.
It wasn't veiy long until the citizens committe was known to every-
body by ads in the paper from the employers and the people that
were the proponents of the bill, which said that that was operated
b}^ the teamsters union.
The reason I am bringing tliis point out — the rest of it, I think, is
cloud stuff, I think he is gathering out of the atmosi^here — is that I
hired him for $150 a week. There was nothing said about a bonus,
but I said that, "If we win this, we will give j^ou a bonus." I might
have said, "a good bonus."
I got a call in 3 weeks and he said, "I need more mone3^ I can't
live on $150 a week." I said, "Howard, I have an agreement with
you or an understanding with you that it is $150 a week, and if you
want any more it must come out of your bonus."
So he said, "Well, I will have to have it." I said, "How much
do you want?" And he said, "$50."
So immediately his salary went from $150 to $200. I had in mind,
and I never said it at any time, that I would give him a $100 a week
bonus at the end of the campaign, and in my opinion I thought it
was a fair, good bonus, a good, fair bonus. So that is how we com-
puted the figures that he had $1,800 left.
(The witness conferred with his counsel.)
Mr. Brewster. And the $1,800, he had already got the $1,800, so
that was $3,600 for about 36 weeks, of bonus. I also want to say that
in the last check that he referred to, I think we are still getting calls
that we owe bills. There was a statement rendered for bills and
that is how he got that last check of three thousand-some dollars, and
that included his last paycheck, and there was in excess of $3,000 that
he owed in bills.
I don't know what proportion. They are trjang to come back on
us to get the money. I don't want to go into it any further, be-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1337
cause that goes on the merits of whether you think that he did such
a wonderful job or v/hether he didn't.
The Chairman. Mr. Brewster, I am not particularly interested in
a dispute as to how much you may owe Mr. Sylvester or not owe
him for his work. That is a matter between the contractual parties.
But I was a bit interested in the method he testified to of your rep-
representatives going into his office, stripping it, and taking all of
his files and those things.
What have you got to say about that ?
(The witness conferred with his counsel.)
Mr. Brewster. I only heard about this, and I wouldn't condone
that myself. The files and the things that he says, the library that
he built up being opposed to the right to work, I do not think was
his property. I think that it was our property, and it was our library.
But his own personal stuff, I think it was handled very wrong, and
I wasn't around or I would not have ordered that kind of piocedure.
The Chairman. Do you know who ordered that kind of procedure ?
Mr. Brewster. No, I do not.
The Chairman. So you denounce that sort of thing?
Mr. Brewster. I certainly do. I would have gone in a different
manner.
The Chairman. I am glad to hear you say that. It seems to me
that in this country of ours we are entitled to some protection against
that sort of imposition. I would hate to think that any man in your
position would countenance those sorts of tactics.
Mr. Brewster. I don't agree with it.
The Chairman. Is there anything further ?
Mr. Kennedy. Not on that.
The Chairman. Do you want to go to a new matter ?
Mr. Kennedy. AVe are almost finished, Mr. Brewster.
Mr. Brewster. Thanks, Bob.
Senator Mundt. Are you turning to something new ?
Mr. Kennedy. Yes.
Senator Mundt. I would like to inquire whether Mr. Brewster did
his homework this noon.
Mr. Brewster. Can I deliver it to you personally?
Senator Mundt. Yes, sir.
( Tlie document was handed to Senator Mundt.)
The Chairman. Let's have order, please. Proceed.
Mr. Kennedy. Mr. Brewster, I want to ask you a little bit about
ISIr. Tom Maloney. I find that the Western Conference of Team-
sters, on cliecks that were signed by you, paid the hotel bill of Mr.
Tom Maloney at the Olympic Hotel in San Francisco from November
5 to November 9, 1954. Can you give us any explanation as to why
you paid the hotel?
Mr. Brewster. The only explanation that I can give on that is that
that check was written, my name was on a check in blank, and that
was paid.
Mr. Kennedy. Did you say
Mr. Brewster. Did I say what ?
Mr. Kennedy. Continue.
Mr. Brewster. That is the only way I can figure that check was
paid.
1338 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. It has to be somebody's responsibility, either Jolm
Sweeney's or your responsibility ; is that right ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. Then if it is not your responsibility, it is Mr. John
Sweeney's?
Mr. Brew\ster. Yes, sir ; and I hate to say that at the present time.
Mr. Kennedy. You have the Olympic Hotel in Seattle, Wash.,
November 26 to November 30, 1954. Is that the same arrangement?
Mr. Brewster. That is the same arrangement.
Mr. Kennedy. Mr. Sweeney's responsibility ?
Mr, Brewster. Yes, sir.
Mr. Kennedy. The Hotel Multnomah, Portland, Oreg., December
6 to December 11, 1954. Is that also Mr. Sweeney's responsibility?
Mr. Brewster. Yes, sir.
Mr. Kennedy. The Olympic Hotel in Seattle, December 11 to
December 13, 1954; Olympic Hotel, Seattle, December 17 to Decem-
ber 19 ; Olympic Hotel, Seattle, Wash., January 3 to January 6, 1955 ;
the Olympic Hotel, Seattle, Wash., February 2-2 to February 24, 1955 ;
the Olympic Hotel in Seattle, April 13 to April 16. Is that Mr.
Sweeney's responsibility ?
Mr. Brewster. Yes, sir ; it was his responsibility.
Mr. Kennedy. Go back to how it could come about that this amount
of money was being misused by Mr. John Sweeney without anybody
catching it in the Western Conference of Teamsters.
Mr. Brewster. I don't know whether it was misused. I don't know
what — Sweeney had certain authorities himself. He wasn't just un-
der my direction.
Mr. Kennedy. You think this was a proper use of union funds?
I will let you decide.
Mr. Brewster. I haven't checked into it to find out whether it was.
I wouldn't say that it was or I wouldn't say that it wasn't. I don't
know anything about the transaction, why he did it or anything else.
Mr. Kennedy. Mr. Tom Maloney was not in the teamster organiza-
tion, as I understood your opening statement, and yet the union funds
were being used to pay his hotel bills ?
Mr. Brewster. That is true.
Mr. Kennedy. And you and John Sweeney were signing the checks.
Do you think that was a proper use of union funds ?
Mr. Breavster. No. Unless there was some extenuating circum-
stances, I would say, "No."
Mr. Kennedy. The hotel bills were also being paid by joint council
37 in Portland, and the Hotel Benjamin Franklin in Seattle; the air
transportation was being paid for Maloney, several trips on United
Air Lines and a trip on Northwest Airlines ; then the telephone biUs
were being paid by joint council 37.
Do you think that was a proper use of union funds ?
Mr. Brewster. I would saj^ "No" on the overall question, that I don't
think so.
Mr. Kennedy. Your name appeared on these checks. Are you
going to take any stei:>s in view of the fact that you had a responsi-
bility, to repay this money to the Western Conference of Teamsters ?
ISIr. Brewster. Yes, sir ; I am.
Mr. Kennedy. You will repay it yourself ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1339
Mr. Brewster. No; not myself. I will see if it is possible that
Maloney or somebody else repays it.
Mr. IvENNEDY. You liave the responsibility.
Mr. Brewster. Of getting- it back. Probably it was my fault in
the category of me repaying ft ; is that what you mean (
Mr. Kennedy. That is what I am interested in.
Mr. Brewster. That would be the last resort. I would try every-
thing else first.
Mr. Kennedy. Before you took it from yourself ?
Mr. Breavster. Yes.
Mr. Kennedy. I was also interested, Mr. Brewster, in your opening'
statement on page 16, and I didn't know if you wanted to correct that.
One of the things that has disturbed me as much as anything about these hear-
ings has been the implication that John J. Sweeney was in any way involved in
anything illegal in Portland. Sweeney is dead. He is not here to defend him-
self. So any hoodlum who chooses can get up and say, "John J. Sweeney did
this," and "John J. Sweeney said that," without fear of successful contradic-
tion. John J. Sweeney was an honest, loyal, hard-working man who devoted his
life to better the lot of the workingman and anyone who knew him knows that.
Particularly on the statement "So any hoodlum who chooses can get
up and say, 'John J. Sweeney did this,' and Mohn J. Sweeney said
that,' " is there any change you want to make in that ?
Mr. Breavster. I don't knoAV Avhether you said anything that
Sweeney did illegal; I don't know AA'hat Maloney might haA^e been
doing for SAveeney.
Mr. Kennedy. No, I am just thinking now where you are talking
criticizing the hearings.
Mr. Breavster. Criticism? I think that the people I refer to are
the people that Avere in the hearings, and I call them hoods. I am not
talking about anybody else.
You are not talking about yourself when you say
I certainh^ am not.
You are not. You didn't have yourself in mind?
Myself or you or the staff.
Would you say that the responsibility for paying
the bills of John J. SAveeney and any arrangements that Maloney or
McLaughlin had Avith the teamsters, the bills of Tom Malone}' — would
you say the bills of Tom Maloney and Joe JNIcLaughlin, and any ar-
rangements that Tom Maloney and Joe McLaughlin had Avith tlie
teamsters, Avere Mr. John SAveeney 's responsibility, not yours?
Mr. Breavster. 1 knoAV nothing of any arrangements at all.
Mr. Kennedy. On the discussion or talk that you had AA^th Mr.
Jim Elkins in your office, Mr. BreAVster, Mr. Jim Elkins came up Avith
Mr. Goldbaum?
Mr. Breavster. Yes, sir.
Mr. Kennedy. And he came into your office. Could you tell us
about Avhat conversation took place there? Did you say anything
to him ?
Let me ask you this: Did you say anything to him about tlie fact
that he Avould be Avading across Lake Washington in concrete boots,
or anything like that ?
Mr. Breavster. I neA^er said that to him or anyone in my life.
Mr. Kennedy. Did you say anything like that ?
Mr.
Ivi:nnedy.
that ?
Mr.
Breavster.
Mr.
Kennedy.
Mr.
Breavster.
Mr.
Kennedy.
1340 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Not a thing. I never threaten people.
Mr. Kennedy. You don't threaten ?
Mr. Brewster. No, sir.
Mr. Kennedy. Tell me what the conversation was, then.
Mr. Brewster. I was very angry at the time that he came there,
that he got into my office. That was the first and last time that he
was there. The conversation got a little hot, and I womid up by
getting very— a little boisterous, I guess. I better siimner down, I
am getting a little boisterous now.
And I believe that Mr. Goldbaum told him that he better leave,
and he left. I don't think it was over 4 or 5 minutes.
Mr. Kennedy. Did you have any conversation with him that you
didn't want him to hurt your two bbys down there ?
Mr Brewster. No; I didn't have any conversation about any 2
boys, and I don't know what 2 boys he might have been referring to.
Mr. Kennedy. Was there discussion about the chief of police or
the mayor ? -, -, ■ n j- ^■
Mr. Brewster. No, sir. I didn't know who the chiet of police was
I have never met the mayor in my life.
Mr. Kennedy. Was there any discussion about that?
Mr. Brewster. No. ■ ^ ^ i i
Mr. Kennedy. Remember when I talked to you m Portland, and
you were telling us about the conversation, you said that he came
up there to see^about the chief of police and the mayor, to talk to
you about that, that Crosby was too tough on them or something?
Mr. Brewster. I didn't say that in my statement, did I ? Have you
got that statement?
Mr. Kennedy. Of course, it was just an interview.
Mr. Brewster. I don't remember that.
Mr. Kennedy. You don't remember saying that ?
Mr. Brewster. I don't remember saying that. In fact, I don t know
what he was up there for. It didn't last long enough to find out.
Mr. Kennedy. You don't have any really definite recollection as
to what occurred in the conversation, but just that you were angry
with him ? ..,,■■ m
Mr. Brewster. That is right, and I didn t want him m my ottice.
:Mr'. Kennedy. What were^you angry with him about ?
Mr Brewster. I was angry with him because a short time before
that, a month or 6 weeks, Crosby told that he played records and
threatened him, wanted to sell them to him, and he told Crosby, ' If
I don't sell them to you, I will go and see if Brewster will buy them."
So that is what I thought he might have come m there for, for that
purpose. „ , • 1 ^ TVT
Mr. Kennedy. We have a quote here from what you said to Mr.
Bellino and myself.
Brewster stated Crosby felt the city was being run like citizens desired it
to be run. He stated, "Elkins wanted me to have Crosby lay off the chief and
the mayor."
Mr. Brewster. Well, I certainly don't remember that statement.
Mr. Kennedy. Do you remember we also asked you whether you
had any business dealings with anybody that was a pinball-machme
operator and you said you had not ?
Mr. Brewster. I don't remember that.
(The witness conferred with his counsel.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1341
Mr. Kennedy. You straiglitened it out yesterday anyway, with
regard to Mr. Galeno.
Mr. Brewster. Thank you.
Mr. Kennedy. Xow, I want to go to a different matter with you,
Mr. Brewster, and that is the question of the k)ans that you have re-
ceived from the various teamster organizations.
As of December 31, 1956, how much did j'ou owe to any teamster
organization?
Mr. Brewster. Seventy-nine thousand-some, I think. Can I ex-
plain it ^ Have you got the figure there to tell me 'I
Mr. Kennedy. Yes, I do.
Mr. Brew^ster. Will you read whatever it is?
The Chairman. As of what date ? I didn't get the date.
]VIr. Brewster. December 31, 1956.
Senator Mundt. While they are hunting for that, Mr. Brewster,
there is one question I would like to ask about the breakdown. At the
bottom of the page, it has "Occidental Life Insurance 84 cents per
month per member for $1,000 policy," but I am not clear whether
that comes out of these payments, or whether it should be added.
]Mr. Brewster. That should be added to it. It comes out of the
top, the $5.25, Senator. All of those deductions come out of the $5.25.
Senator Mundt. You have some big figures, like $120. Is that ])ro-
vided by 150 members or something like that ? U]) until that it looked
like each member paid the amount you stated. Then you come down
to the Seattle Federal Trade Conference, $120 per year.
Mr. Brewster. That is right. That is on the entire membership.
Senator Mundt. Of about how many ?
Mr. Brew^ster. Roughly speaking, 5,500 to 6,000.
Senator Mundt. Well, a little higher, you have, "Over the road
division, $150 per year.'' You said that was $1 per member.
Mr. Brewster. No, that isn't a yearly. That is monthly, isn't it ?
Senator Mundt. Monthly, right.
Mr. Brewster. Yes, $150 a month, and that is based upon 1,500
members at 10 cents apiece.
Senator Mundt. That would be $1,500. You would divide these
figures by about the same $1,500, then, down here?
Mr. Brewster. No. That would be on the entire membership.
Senator Mundt. Of about 5,500 ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. I am afraid I am going to have to go back a minute,
Mr. Brewster.
On this Portland situation, did you know what Tom Maloney was
doing down there?
Mr. Brews'iter. Only hearsay.
Mr. Kennedy. What did you hear that he was doing?
Mr. Brewster. I heard Maloney was down there working in a cam-
paign, a political campaign.
Mr. Kennedy. Mr. Tom Maloney was your friend, was he not ?
Mr. Brewster. Well, I have known Tom Maloney for a long time.
There are probably a lot of degrees of friends, and I don't know just
exactly what category he would come in.
Mr. Kennedy. And you were the one that secured the loan for him
from the Spokane office of the teamsters?
Mr. Bbewster. No, I didn't exactly secure the loan from him
1342 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. For him.
Mr. Brewster. — for him. He wanted a loan. The money in
Spokane was in the bank not earnino; anything. We had it all in a
checking account, and he approached, himself, Ab Ruhl, and Ab called
me and I said, "If he puts up collateral and it is protected, I don't see
any reason why you shouldn't loan it."
Mr. Kennedy. So you gave istructions to go ahead with the loan?
Mr. Brewster. I said, wait a minute, that I couldn't see any objec-
tions, but it was still up to their board to object and not do it regardless
of what I said. I didn't tell them to do it. I said I could not see any
objections if he had protection and collateral up to secure the loan.
Mr. Kennedy. What happened, in fact, was that you approved of
the loan to Tom Maloney at tliat time?
Mr. Breavster. I don't think it is a fact. I said I couldn't see any
reason for not loaning him the money.
The Chairman. Who were you talking to when you said that?
Mr. Brewster. I was talking to Ab Euhl.
The Chairman. Who was he ?
Mr. Brewster. The secretary of local 690 in Spokane.
The Chairman. Wouldn't you regard that reply that you gave as
approval, when the secretary called you and asked you about it?
Mr. Brewster. I would regard it as probably — it might be con-
sidered I would do it myself, if that is what you mean, if I was in
that position.
The Chairman. He was calling to get your approval, was he not?
Mr. Brewster. I still think he went back to the board.
The Chairman. I don't care what he did. But the call was to get
your approval.
Mr. Brewster. I don't approve those, other than use my own judg-
ment on them, and that isn't, in my opinion, an api^roval.
The Chairman. Mr. Brewster, wasn't the call, and don't you know
that call was, to submit the matter to you for your approval before
the action was taken ?
Mr. Brewster. I don't know that that was the fact.
The Chairman. For what other purpose would he be calling and
asking you about it ?
Mr. Brewster. It would probably be the suggestion that he prob-
ably thought he had in mind, but it certainly wasn't in my mind. The
board itself could turn it down. It was up to the board. I asked him
if he had the money or if he had to take it out of anything that was
earning money, and he said, "No, all of our money is in a checking
account, and we have some $60,000 or $70,000,'' whatever it was, that
wasn't earning.
The Chairman. You discussed it in some detail ?
Mr. Brewster. The amount of money he had in and the security.
The Chairman. The amount of money and the nature of the loan?
Mr. Brewster. And the security.
The Chairman. And the security ?
Mr. Brewster. I said I would have it checked on, all the securities
and so forth, that he had.
The Chairman. You concluded by saying that you could see no
objection to making the loan?
Mr. Brewster. Yes, I said that.
LVIPROPER ACTIVITIES IN THE LABOR FIELD 1343
The Chairman. I would regard that as an approval, if I had been
inquiring of my superior, wouldn't you 'i
Mr. Brewster. I am not exactly Ab's superior.
The Chairman. You are a little bit superior to a local.
Mr. Brewster. I don't know what face on the totem pole I would
])e. But Ab liuhl is elected.
The Chairman. All right, Mr. Brewster, we will accept what you
have said as an explanation.
I thinli we can all determine for ourselves what conclusion we will
reach about it.
Mr. Bre:w^si'er. Okay.
Mr. Kennedy. Did 3'ou know what the loan was going to be used
for ^
Mr. Brewster. Yes. He was going into a business transaction.
Mr. Kennedy. Did you know it was going to be for a cardroom?
Ml-. Brewster. A cardroom and restaurant.
Mr. Kennedy. A cardroom and restaurant ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. You knew that?
Mr. Breavster. Yes, sir.
]Mr. Kennedy. I want to read you the testimony of Mr. Ruhl, page
41. He states that Mr. Maloney came to him, and the question is:
So you turned Mr. Tom Maloney clown, is that right, the first time he asked
you ?
Mr. Ruhl. Yes.
Did Mr. Ruhl tell you that he had turned Tom Maloney down?
;Mr. Brewsi-er. No, he did not.
Mr. Kennedy (reading) :
Mr. Kennedy. You did not feel that it was the proper kind of loan for your
union to make?
Mr. Ruhl. I think so.
Mr. Kennedy. Did you ever loan the money to him?
Mr. Ruhl. I did.
Mr. Kennedy. For what reason did you ultimately loan him the money?
Mr. Ruhl. He couldn't open his place and I took it up with the members of
my board and I told them about it and he would be willing to give me the deed
on the house in Edmonton, AVash., for security. They told me if I thought it
was okay to let him have the money.
]\Ir. Kennedy. Did you ever discuss it with anyone else, Mr. Ruhl?
Mr. Ruhl. I think I discussed it with Mr. Brewster, yes.
Mr. Kennedy. What did Mr. Brewster tell you?
Mr. Ruhl. He told me to help him out.
Did you tell him that?
Mr. Brewster. I don't believe I did. I think I went into it a little
farther, "To be sure he has the security and so forth before you loan
him the money." I don't remember this expression at all.
The Chairman. Mr. Brewster, as I understood you, you knew at the
time you were passing on this that the money was to place him in the
business of a gambling business ?
Mr. Breavster. No, sir.
The Chairman. A card table? You did not understand he was
going to run a gambling business ?
Mr. Breavster. Those are not illegal businesses in the sense of
legal. They are licensed cardrooms, they are licensed restaurants and
so forth. They are not illegal. There are lots of them.
80.330— 57— lit. 4 IG
1344 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Well, they are gambling places, are they not?
Mr. Brewsit.r. I did not know that it was a gambling place, and
I don't know. They play cards. I think in the city of Seattle I know
they are licensed. They play a certain kind of cards. I don't think
they play poker.
The Chairman. I am jnst asking for information.
Mr. Brewster. I know that there are several places where they
term them as cardrooms and license them to that effect. They play
whist and panguingui or whatever it is.
The Chairman. The information on the face of it is that you knew
he was going into a gambling business. I wanted to know whether
you knew that or not.
Mr. Brewster. Thank you. I did not.
Mr. Kennedy. You did not know he had a blackboard and was
acting as a bookie ?
Mr. Brewster. No, sir, I didn't.
Mr. Kennedy. You never were told that?
Mr. Brewster. I never was told.
]Vfr. Kennedy. Mr, Euhl knew it.
Mr, Brewsi-er. Mr. Ruhl didn't tell me.
Mr. Kennedy. Would you have approved the loan if you had
known that?
Mr. Brewster. Not if he was in that business; no. I would have
told him no.
Mr. Kennedy. You had gotten several jobs for Mr. Maloney, had
you not?
Mr. Brewster, Yes, I did.
Mr. Kennedy. Where did you get that employment for him?
Mr. Brewster. At the racetrack.
Mr. Kennedy. On how many different occasions did you get jobs
for him?
Mr. Brewster. After I got him the first job, then that repeated
itself and from season to season he would go back and get the job,
the same job, back again,
Mr. Kennedy. Mr. Maloney, therefore, was your friend, was he
not, Mr. Brewster?
Mr. Brewster. I said the degree of friend, I don't know. I
wouldn't say he was my good friend.
Mr. Kennedy. But he was your friend, was he not?
Mr. Brewster. Well, he would be considered a friend or acquaint-
ance.
Mr. Kennedy. Well, you have gotten him a job on several different
occasions for several years. You had secured a loan from one of the
teamsters unions for him so that he could open up a restaurant
cardroom. So he must have been somewhat of a friend of yours ?
Mr. Brewster. I think ''somewhat*' is the right word.
Mr. Kennedy. Then you secured transportation for him on union
funds, did you not ?
Mr. Brp:wster. I secured it, I think, at the one time when he was
going to Spokane. And at tlie present time I don't know why I did it.
Mr. Kennedy. That was on Western Conference funds ?
Mr. Brewster. That is true.
Mr. Kennedy. And yet, despite this history of knowing Tom ]\Ia-
loney for approximately 20 years, and having gotten a job for him
IMPROPER ACTIVITIES IN THE LABOR FIELD 1345
over this period of time, ]iavini>- ootteii a loan for him from the Spo-
kane ollice of the teamstei's, haviiio- secured transportation for him at
Western Conference expense, you say that of tliis matter down in Port-
land that you knew nothin<>- about it, is that right?
Mr. Brew^ster. That is true.
Mr. Kexnedt. That is all Mr. John J. Sweeney's responsibility?
Mr. Brewster. That is not my responsibility.
(At this point. Senator Ives withdrew from the hearing room.)
Mr. Kennedy. Even though you had this history of friendship with
Tom Maloney, you say suddenly the friendship has shifted from you
TO John J. Sweeney and it was his responsibility ?
Mr. Brewster. It wasn't my responsibility, because I did not have
anything to do with sending him to Portland. I think I said in this
statement that I heard that he M'as down there doing something in a
political way — I don't know whether I put that in there, but that is
what I heard — and I said to John Sweeney, "Better be careful of him,
because he is irresponsible."
Mr. Kennedy. Why, if you thought he was irresponsible, did you
have the Spokane office of the teamsters give him a loan?
]\Ir. Brewster. That was several years later, and the irresponsibility
started cropping out more from day to day.
Mr. Kennedy. You had known him for 20 years, had you not?
Mr. Brewster. I was fooled for about 16 of them.
Mr. Kennedy. When did he suddenly start to spring up this friend-
ship with John J. Sweeney and John J. Sweeney replaced you in his
iitfection ?
Mr. BreW'Ster. He has the nicest way of getting into somebody's
friendship, or so-called acquaintance, of any individual I have ever
seen. He is a non compos mentis, in my book.
Mr. Kennedy. You see the difficult position that it puts the commit-
tee in. He had this history of 20 years of friendship with you, and
you signed the checks to ])ay his bills down in Portland, you and John
J. Sweeney, and he had this history of the friendship with you, he
goes down there and then you come before the committee and say that
is all John J. Sweeney's responsibility, that is his fault. And John J.
Sweeney is dead so we cannot ask him about it.
You see that that is a little difficult to understand.
Mr. Brewster. Well, it might be for you, but it is not for me.
Mr. Kennedy. Mr. Brewster, what was your relationship with
Mr. William Langley?
Mr. Brewster. Very brief.
Mr. Kennedy. Did you know William Langley?
iVIr. l^REWS'rER. I think I met him maybe twice.
Mr. Kennedy. Where, and under what circumstances, did youi
meet him ?
Mr. Brewster. I believe at one time he was introduced to me in
my office, by Sweeney, and I don't recall whether there was anyone
else with him at that time or not. Then I met him in San Francisco
later on, I don't know the exact time
Mr. Kennedy. Was that after the election?
Mr. Brewster. Yes, I think it was after the election.
Mr. Kennedy. Was he in the company of Mr. Tom Maloney at
the time ?
1346 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. I met him at a place where we took a bus out to the
fights. I don't remember whether Maloney was there. There were
about 40 people in the bus.
Mr. Kennedy. You do not know who introduced him to you ?
Mr. Brewster. I was introduced before.
Mr. Kennedy. By whom?
Mr. Brews'tor. I was introduced before by Mr. Sweeney, so I
wasn't introduced again.
Mr. Kennedy. Can you give any explanation as to why the team-
sters would be paying his hotel bill ?
Mr. Brewster. No, I don't.
Mr. Kennedy. Are you going to try to take steps to have Mr. Lang-
ley repay that money to the teamsters ?
Mr. Brewster. I will.
Mr. Kennedy. And if he does not pay it, and as you signed the.;
check, are you going to reimburse the teamsters for that money ?
Mr. Brewsitsr. As a last resort ; yes.
Mr. Kennedy. That is if you do not get it from Mr. Langley, yoa
will put it in yourself, is that right ?
Mr. Brewster. I will make a strong attempt, surely, to get it fronx
Langley.
Mr. Kennedy. Then if Mr. Langley does not return it, will you
return it ?
Mr. Brewster. Well, I don't know whether it is exactly all my
responsibility.
Mr. Kennedy. It is Mr. John Sweeney's and your responsibility..
Mr. Brewsit:r. Yes; and he is dead. Could I pick up 50 percent
of it?
Mr. Kennedy. It is the union members' dues. That is something-
you will have to work out with them.
Could you tell the committee what this check for $500, dated Octo-
ber 26, 1954, to William Langley, was for?
(Document handed to witness.)
(The witness conferred with his counsel.)
The Chairman. We will first ask you to identify the check, if it
bears your signature.
Mr. Brewster. Did you say 1956 ?
Mr. Grutin. No ; it is 1954.
Mr. Brewster. It is October 1954. It is made out — it is veiy
blurry. It is made out to William M. Langley, I guess. I know the
name, that is why I am reading it.
The Chairman. In the amount of what ?
Mr. Brewster. $500.
The Chairman. Signed by whom?
Mr. Brewster. Signed by William Langley.
The Chaieman. It was endoi-sed William Langley, you mean.
Mr. Brewster. Yes.
The Chairman. Signed by whom?
Mr. Brewster. Excuse me, I am sorry. Signed by myself and John
J. Sweeney.
The Chairman. That check has already been marked exhibit 60 for
the record.
It is exhibit 60 ?
IMPROPER ACTIVITIES IX THE LABOR FIELD 1347
(The exhibit referred to appears in the appendix of pt. 3, on p.
1104.)
Mr. Brewster. That is ri^ht.
The Chairman. You are now h:»oking at and examining exhibit 60,
that exhibit that you are testifying about.
Mr. Kennedy. IVfr. Brewster, do you know what that was for, the
$500 ? Will you read the endorsement ?
Mr. Brewster. Yes. I read the endorsement, but it is very con-
fusing.
The Chairman. What does the endorsement say ?
Mr. Brewster. It says, "William Langley" and then it is "pay to
the order of First National Bank of Portland, Ores:., Joint Council
Xo. 37."
Mr. Kennedy. I believe that shows that they cashed the check for
him.
Mr. Brewster. Well, if they did, they would have to give him a
■check for it. They don't receive cash in the Joint Comicil, so if they
did, they would have to give him cash for it — I mean give him another
check for it.
The Chairman. Why would they have to do that?
Anyone can cash a check if they have the money.
Mr. Brewster. They don't handle cash. Senator.
The Chairman. Are you sure ?
Mr. Brewster. I am pretty near positive. I don't know who would
pay in cash. I don't know where it would come from that they would
receive cash. Moneys that they get are from local unions in checks.
The Chairman. It is a little bit strange that he would receive the
•check from the union and then take it down to the union and get it
cashed.
Mr. Brewster. Yes, it is.
Mr. Kennedy. Do you know wh}^ that $500 was given to him by
the Western Conference ?
Mr. Brewster. No, I don't.
Mr. Kennedy. You signed the check, Mr. Brewster.
Mr. Brewsitji. I did. The same way, the same answer goes.
The Chairman. Do you have any idea how many checks like that
you have signed where you have no knowledge of the purpose?
Mr. Brewster. I have signed a good many checks in blank.
The Chairman. A good many have come in here that you seem to
liave no knowledge about at all. I am sure we do not have all of them.
Mr. Kennedy. What about the loan from Mr. Sam Sellinas ? You
secured a loan from Mr. Sam Sellinas in the State of Washington?
Mr. Brewster. "\^^iat page is that on ?
Mr. Kennedy. Why don't you give just an explanation of it?
Mr. Brewster. I want to refresh my memory on Sam Sellinas.
Mr. Kennedy. It is page 106.
Senator Mundt. Before we leave 'Sir. Langley altogether, Mr.
Brewster, I cannot quite reconcile the western conference sending
$500 to a candidate for district attorney down in Multnomah County,
in Portland. It says in your prepared statement that you did not
support local candidates. He would be a local candidate, and it Avould
be up to the local union. The western conference, insofar as it got
into politics at all, even on the State and national area level. This
looks as though this is a violation of that rule that you say the
western conference follows.
1348 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. No, I think I said further, Senator, that if areas
need financial assistance in their campaigns, that we contribute to the
areas.
Senator Mundt. This man Langley is a curious character. I have
been sitting on these committees in the House and Senate for more
than 16 j^ears and have seen people take the fifth amendment.
Mr. Brewster. Probably some people think I am a peculiar char-
acter.
Senator Mundt. I have heard Communists take it and racketeers
take it, and gangsters take it, bvit this man Langley took it 100 percent,
all the time. I have never seen anything like that, and he is supposed
to be the district attorney and enforce the law. I cannot see why the
teamsters, the teamsters in Washington, would want to support a
fellow in Portland that was like that.
Mr. Brewster. Of course, all of these things, that you are talking
about, came out afterward.
Senator Mundt. Yes, that is probably true. You mean, these are
things that occurred after he was elected ?
Mr. Brewster. Yes. To the best of my memory, Ab Kuhl asked
me about what I thought about making a loan to Sellinas. He said
he had taken it up, I believe, with his board. I don't remember the
discussion, of whether the board was weighing it to figure out whether
they would, but I again asked him what security Sellinas would have,
and he told me that the security was very good, that he had two pieces
of property that were going up in value all the time. He also received,
I believe, 5 percent on the loan.
And it was, again, moneys that were in there and not earning.
Mr. Kennedy. How long had you known Mr. Sellinas, prior to that
time?
Mr. Brewster. I had known him for — before that period of time?
Mr. Kennedy. How long have you known him, from now?
Mr, Brewster. I guess 10 or 12 years. I am guessing, but about
10 or 12 years.
Mr. Kennedy. Had you ever had any business dealings with him
yourself ?
]Mr. Brewster. No business dealings, other than that he was a
stockholder in the Play Fair racetrack when I first knew him.
Mr. Kennedy. Did you have an interest in the Play Fair racetrack?
Mr. Brewster. Just a rooting interest, just to run a horse. No
interest at all, financially at all,
Mr. Kennedy. How would that tie in with it?
Mr. Brewster. Well, I was a racing commissioner at that time.
We would hold meetings, stockholders and representatives of the track
would go to the meetings, and that is how I became acquainted with
him.
Mr. Kennedy. But you never had any business dealings with liim
yourself?
Mr. Brewster. No business dealings at all.
Mr. Kennedy. Did you ever have any financial dealings ?
Mr. Brewster. No, sir.
Mr. Kennedy. None of any kind ?
Mr. Brewster. Yes; I sold him a piece of property here not long
ago.
^^.♦Kennedy. How long ago was that ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1349
Mr. Brewster. About 8 or 10 months ago.
Mr. Kennedy. Would not you consider that a business deal?
Mr. Brewster. Yes, I forgot about that piece of property. That
is the only thing.
Mr. Kennedy. Would you think again and find out whether you
have had any business dealings with him?
Mr. Brewster. No ; there is no other.
Mr. Kennedy. You never had any financial dealings with him?
Mr. Brewster. No.
Mr. Kennedy. Have any of the companies with which you have
been associated had any financial dealings with him ?
Mr. Brewster. No ; not any that I know of.
Mr. Kennedy. Have you ever borrowed any money from him
yourself ?
Mr. Brewster. No ; never have.
Mr. Kennedy. Have you ever loaned him any money ?
Mr. Brewster. No ; not to my recollection. No ; I haven't loaned him
any money that I remember.
Mr. Kennedy. Did you not have an interest in 1952 in the Clear-
brook Stock Farm?
Mr. Brewster. Yes, sir, I did.
Mr. Kennedy. A $540 check, stamped Sellinas
Mr. Brewster. Just a minute. 1 think I can explain that. That
I forgot.
It was about a horse that I had of his that I was taking over.
Mr. Kennedy. What other business?
Mr. Brewster. Tliat is all. That is the only business.
Mr. Kennedy. What was the financial arrangement that vou had
on that X
]Mr. Brewster. That I was to buy the horse out of winnings.
Mr. Kennedy. Then on March 20, another $1,862.34 ?
Mr. Brewster. Went to him ?
Mr. Kennedy. Yes.
Mr. Brewster. That was out of winnings.
Mr. Kennedy. S. S. Sellinas?
Mr. Brewsiter. Yes. It went out of winnings.
Mr. Kennedy. I am sorry. This is from Mr. Sellinas to you. The
$540 is from Mr. Sam Sellinas to you, deposited in your bank ac-
count. It is from the Clearbrook Stock Farm.
Mr. Brewster. I don't recall that. It could have been that he
wanted to claim a horse or something. . I can't recall it at the present
time.
Mr. Kennedy. Let me tell you, Februarv 1952, $540; March 20,
$1,862.34; May, $709; June, $1,037; and you have there "board and
training." What does that mean opposite his name ?
(The witness conferred with his counsel.)
Mr. Brewster. That possibly could be right.
Mr. Kennedy. What was that money for '.
Mr. Brewster. For the horses that he owned that were being trained
by the Clearbrook.
The Chairman. The Chair will announce that we are expecting roll-
call votes in the Senate. This is a rollcall signal.
It is now nearly 4 : 30. By the time we could get back, we would
not have much opportunity ^ ^ ^
1350 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Griffix. Mr, Chairman.
The Chairman. To take further testimony this afternoon. There-
fore, it will be necessary
Mr. Griffix. Could I say something to you in private a minute,
if you will let me.
The Chairmax. You will have to hurry. I have to vote.
Senator Muxdt. Mr. Chairman, while he is coming around, I would
ask permission to put into the record the breakdown of the dues of
Mr. Brewster. I will ask the reporter to ignore my penciled nota-
tions. I simply ask for the pen and ink stuif which Mr. Brewster
supplied.
The Chairmax. "Without objection, that may be done.
(Docmnent referred to follows :)
General Teamsters Local No. 174 Seattle, Wash.
Dues per month $5.25
Monthly per capita tax :
To International Brotherhood of Teamsters . 40
-Joint Council No. 28 . .30
Joint Council convention fund . 05
.Joint Council legal fund .05
Joint Council legislative fund . 06
To western conference general fund . 20
Western conference retirement trust No. 1 .10
Western conference retirement trust No. 2 . 07
Western conference strike fund . 25
Western conference over-the-road division, per month 150. 00
Seattle Central Labor Council 60. 08
Yearly payments :
Seattle Metal Trades Council 120.00
Seattle Building and Construction Trades Council 150. 00
Beverage division, western conference 25. 00
Seattle Building Trades Council 280. 00
Occidental Life Insurance Co. 84 cents per month for member for
member for $1,000 policy
The Chairmax. The committee will stand in recess until 11 o'clock
in the morning.
(Members present at the taking of the recess: The chairman, and
Senators Mundt, and Goldwater.)
(Wliereupon, at 4:15 p. m., the committee recessed, to reconvene
at 11 :00 a. m., Fridav, March 22, 1957.)
INVESTIGATION OF BIPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
FRIDAY, MARCH 22, 1957
United States Senate,
Select Committee on Improfer Actts^ities
IN THE Labor or Management Field,
Washington, D. C.
The select committee met at 11 a. m., pursuant to Senate Resolution
74, agi-eed to January 30, 1957, in the Caucus Room, Senate Office
Building, Senator John L. McClellan, chairman of the select com-
mittee, presiding. Present: Senator John L. McClellan, Democrat,
Arkansas; Senator Pat McNamara, Democrat, Michigan; Senator
Karl E. Mundt, Republican, South Dakota: Senator Barry Gold-
water, Republican, Arizona ; also present : Robert F. Kennedy, chief
counsel to the select committee ; Jerome Adlerman, assistant counsel ;
Alphonse F. Calabrese, investigator; Pierre E. G. Salinger, investiga-
tor ; Ruth Young Watt, chief clerk.
(Members present at the convening of the session : The Chairman
and Senator Goldwater.)
The Chairman. The committee will come to order.
Mr. Kennedy. Mr. Brewster.
TESTIMONY OF FEANK W. BKEWSTEE, ACCOMPANIED BY HIS
COUNSEL, JEREY N. GEIFEIN AND JOHN K. PICKENS— Eesumed
The Chairman. All right, gentlemen, stop the pictures now.
Mr. Kennedy ?
Mr. Kennedy. Mr. Brewster, we were talking yesterday about the
moneys that came from Mf. Sam Sellinas.
Mr. Brewster. Yes, sir.
Mr. Kennedy. Do you have any explanation of that ?
Mr. Brewster. Yes. You refreshed vny memory on it. I abso-
lutely forgot about it. I had some horses, I don't recall their names
at the present time, and the stable that I had trained those horses for
a short period of time, not too long.
Mr. Kennedy. You were training some of his horses for him ?
Mr. Brewster. Yes; or the trainer that I had trained the horses.
I didn't probably do it at that time personally. I don't know whether
I did or not.
Mr. Kennedy. And those payments were for
Mr. Brewster. For training and board and so forth. It was ap-
proximately $10 a day.
1351
1352 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. He had some horses ?
Mr. Brewster. Yes, sir.
Mr. Kennedy. You gave approval of that loan from the Spokane
local, did you, on Sellinas ?
Mr. Brewster. Well, I still don't think it is just exactly an ap-
proval. I told them that it was still up to their executive board. I
felt that if it was secured, that the loan would have been all right. I
have a lot of people calling me. Probably on things of that kind, even
probably under the direction of Mr. Anthony, you might say, I get all
kinds of calls from business secretaries on all subject matters.
Mr. Kennedy. Did you ever have the western conference loan any
money to the Spokane Teamsters Union to cover that loan to Sellinas?
Mr. Brewster. No. I believe that we loaned them some money one
time on their building. I am not sure. It didn't have anything to do
with a loan.
Mr. Kennedy. It had nothing to do with the loan ?
Mr. Brewster. Of Sellinas?
Mr. Kennedy. Yes.
Mr. Brewster. No, sir.
Mr. Kennedy. Mr. Brewster, I have another matter that I wanted
to ask you about. You had a $10,000 deposit in the Needmore Stables
on July 6, 1955. Where did that money come from?
Mr. Brewster. I think I sold some stocks or some of my bonds and
put it in.
Mr. Kennedy. Do you have any details on that ?
Mr. Brewster. No, I haven't. I will have to check on my own per-
sonal account to find that out.
Mr. Kennedy. Was it some stocks that you owned ?
Mr. Brewster. I owned some stocks, I owned some bonds, and I
sold all of those.
Mr. Kennedy. Was that in 1955 ?
Mr. Brewster. In 1955 I did, I am sure.
Mr. Kennedy. Would you tell me what kind of bonds or what kind
of stocks ?
Mr. Brewster. I had savings bonds at that time that I had been sav-
ing since 1937 that I sold in that period, I think around in there
somewhere. It might have been 1954 or 1955. Then I had some other
stocks on that strait over between Detroit and Windsor. I had some
bonds on that. I sold them. All the bonds and everything I had I
sold in the period of about 2 years.
Mr. Kennedy. But you deposited $10,000 on July 7 in the Holly-
wood Turf Club account.
Mr. Brewster, In that account from my own account ?
Mr. Kennedy. I am trying to find out where it came from.
Mr. Brewster. I know that I can prove where it came from if I have
a chance to look at the record.
Mr. Kennedy. You have no idea right now ?
Mr. Brewster. I haven't the idea, but I know at tliat time that I
was selling my bonds and putting it in there at that time.
Mr. Kennedy. Would your own personal records show ?
Mr. Brewster. I believe it would lielp considerably. I think it
would show.
Mr. Kennedy. "Wliere are they going to be made available to us?
Mr. Brewster. I would like to have a little time to clean up my
IIVrPROPER ACTIVITIES IN THE LABOR FIELD 1353
desk and do a little work for that rank and file nieinber, John C.
Truck Driver. I have been away now for a period of a month, and if
1 could have a couple of weeks to clean that up, I will get into this
other,
Mr. Kenxedy. Will you make those records available to our investi-
gator out in Seattle ?
Mr. Brewster. Yes ; I will.
Mr. Kennedy. That is, rather than bring- them all here.
Mr. Brewster. Oh, sure.
Mr. Kennedy. Could we have an understanding? It would be
more couA^enient for us if the records of the Teamsters Union in the
Western Conference could be made available to the investigators at the
location rather than to have them brought all the way back here to
Washington.
Mr. Brewster. I don't think we are going to have any trouble on
that point.
Mr. Kennedy. Could we agree to that, do you think, except where
you actually refuse to turn them over ? But where you will
Mr. Brewster. Let me say this. That is a local problem. Any local
union that has their own autonomy, but I will do anything I can to
assist you to have you get the records.
Mr. Kennedy. Any place where you have control, however, those
records will be made available ?
Mr. Brewster. There will be no argument about that.
]\Ii\ Kennedy. We can get those records Avhere we need them in
our own office, can we, Mr. Brewster, out there? Will you allow us to
take them out?
Mr. Brewster. I would rather not have you take them out. I woidd
rather
Mr. Kennedy. It is a technical point, but if you had to produce them
here, you would have to leave them here. Often you people only
work from 9 to -dt: 30, and we would like to be able to work on those
records a little later. So far your offices have closed at 4: 30 and we
have had to stop work. We would like to make an arrangement so
that we could continue to work on those records.
]Mr. Brewster. Well, I thin.k tliat we stayed there Saturday and
Smiday to assist you at one time.
Mr. Kennedy. One time ?
Mr. Brewster. Yes, one time. And I would think if it is necessary
to work longer hours, we will have somebody there with you.
]Mr. Kennedy. You will make that arrangement?
]\Ir. Breavster. I will.
Mr. Kennedy. You Avill always have somebody, so that we can work
there as long as we want.
Mr. Breavster. Don't Avork them too long, please ?
Mr. Kennedy. Another matter I wanted to clear up is this: You
Avere talking the other day about an election. You are elected as a vice
president of the teamsters; is that right?
Mr. Breavster. Yes, sir.
Mr. Kennedy. You are, however, appointed as the chairman of the
Western Conference of Teamsters?
Mr. Breavster. Yes. That is the Avay in the constitution. But I
still went through an election and was elected. I was nominated and
1354 IMPROPER ACTIVITIES IN THE LABOR FIELD
elected, just through routine to see if I won. But the constitution calls
that I am appointed by the general president.
Mr. Kennedy. The head of all the conferences are appointed by
the general president ?
Mr. Brewster. That is true.
Mr. Kennedy. Now I want to get to your loans, Mr. Brewster, your
own personal loans.
Mr. Brewster. Yes.
]Mr. Kennedy. What loans have you received from the union ?
Mr. Brewster. I haven't the loans at the present time. I haven't
them written out what time I had the loans, but I have checked and I
have lumped the loans altogether, and I think when we stopped on
that — you could probably help me on the figures a little bit — it i&
$79,000 or something like that from the WesteiTi Conference of Team-
sters.
Mr. Kennedy. Western Conference of Teamsters $77,650.
Mr. Brewster. $77,000.
Mr. Kennedy. That was December 31, 1956.
Mr. Brewster. That is at that time.
Mr. Kennedy. Then you had some other loans ?
Mr. Brewster. Are there other loans there ?
Mr. Kennedy. You tell me.
Mr. Brewster. I don't know of any otlier loans there. Are there
other loans ?
Mr. Kennedy. You do not know of any other loans ?
Mr. Brewster. No.
(At this point, Senator Mundt entered the hearing room.)
Mr. Kennedy. You are not aware of any other loans from any of
the teamsters unions ?
Mr. Brewster. I thought that that lumped the whole thing together.
Mr. Kennedy. Let me ask you about that. That was as of Decem-
ber 31, 1956. Have you repaid that loan ?
Mr. Brewster. Yes, sir. They have a warranty deed for enough
property, including my home, to pay for every dime on those loans
that I owe. I have turned that deed over and made it out to them
about a month ago.
The Chairman. After this investigation got underway?
Mr. Brewster. That I paid the loans? Yes, but I have been think-
ing of it for some time, because I wasn't able to pay it back fast
enough, and it was botliering me. so I gave them every piece of prop-
erty, everything tlia.t I have of any value. I have an arrangement
made where, from the real estate board in the city of Seattle, there
would be one appointed by the connnittee of the western conference,,
one appointed by myself, and the two of them appointed the third, to
get an absolute appraisal on every parcel that there is.
The Chairman. Has that appraisal been made?
Mr. Brewster. That appraisal is in the makings now. They are
appraising it now. I paid interest. And I intend to pay every dime.
That will take care of every dime that I owe.
The Chairman. Over what period of time did you borrow this
money ?
Mr. Brewster. Well, off and on it has probably been 10 or 12 years.
I have paid part of it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1355
The CiiAiRMAisr. Yon have been owing some of it for 10 or 12 years?
Mr. Brewster. Yes, sir.
The Chairman. Do yon pay interest on it regularly ?
Mr. Brewster. Yes, sir.
The Chairman. Do you have receipts for that interest, or records
showing that you paid interest on it?
Mr. Brewster. The records, I think, will sliow, I am positive they
will show, that there has been interest paid on it.
The CiiAiKMAX. Did you give notes for it?
Mr. Brewster. Yes, sir, I have had notes, and I ha.ve had my prop-
erty and security up at all times.
The Chairman. Who approved the loans?
Mr. Brewster. Well, tlie western conference and the executive board
of 174. I have paid back everything to 174, including the last. When
I picked up all of the loans and made them out as a, loan from the
western conference, I paid a check for sixteen-thousand-and-some-odd
dollars, and there was $8,000, I believe, of that that was interest.
The Chairman. When was that paid?
Mr. Brewster. I think about 2 years ago, Senator.
The Chairman. And you put all of your loans into the western
conference ?
Mr. Brewster. Yes, sir.
The Chairman. What did they amount to at that time ?
Mr. Brewster. It amounted to 80 some, or pretty close to $90,000.
I think I paid clown to — I don't know just how much — $80,000 some,
and I paid down to where it is now. I wouldn't say just exactly how
much it was. I have those figures. But I have kept a perfect record
of it, and I know that this will make me feel better.
The Chairman. Mr. Brewster, how long has this practice been
going on that high officials of the union borrowed money from union
dues ?
Mr. Brewster. Well, from the funds, I guess it has been going on
for quite awhile, I know that we do this: some people, instead of
having financed, probably, their homes, we have taken mortgages
at different times. I don't think that the practice is w^rong if there
is security and interest is paid. I thinlv that it is rather a natural.
The Chairman. You do think it is wa^ong, though, to borrow and
not give security and not pay interest ?
Mr. Brewster. In my own personal opinion, yes, sir.
The Chairman. If the information we have is correct, according
to his own statement, tliat he borrowed several hundred thousand of
dollars without paying any interest, the president of the international,
then yon disapprove of it, do you ?
Mr. Brewster. In my personal opinion, I would.
The Chairman. You would disapprove of it.
All right. When you say that this $77,660 for loans as of December
31, 1956 was the amount of your indebtedness, you do not mean to
include in that any other indebtedness that you may owe for funds
paid out, such as has been testified to here for your personal benefit,
and vour racing enterprise?
Mr. Brew^ster. That is separate, and I intend to make a check and
see that that is paid.
The Chairman. So you owe whatever that is in addition to the
$77,660?
1356 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Bkewster. That is true, Senator.
The Chairman. That amount has not been ascertained ?
Mr. Brewster. It has not been ascertained, but I feel that this will
cover it, and it will just about put me even in the world.
The Chairman. Counsel wishes to consult with you a moment.
(The committee counsel conferred with the witness.)
The Chairman. We will resume order.
I will pursue this indebtedness a little further, and, counsel, you
may take over the questioning at any time.
As I understand this $77,000 has not been paid. You simply made
a deed to your property. I assume the property is to be sold and
the proceeds applied to the payment of this indebtedness? Is that
correct ?
Mr. Brewster. Either that, or they can keep the property them-
selves. The value of the property is there and it is increasing all the
time. This property is worth, I think, quite a bit in excess. What I
mean by that is maybe $20,000 more than the indebtedness, or possibly
more. I Imow it is good property. I hate, myself, to let it go. It
is increasing in value, and I think it would be a good thing for
them
(At this point, Senator McNamara entered the hearing room.)
The Chairman. In other words, you simply conveyed to your
creditor everything you have, hoping they can get the money out of it?
Mr. Brewster. No, that isn't it. If there is anything it is worth
on appraisal, any less than that, I will make the difference up.
The Chairman. That is what I mean.
Mr. Brewster. Yes, sir.
The Chairman. So far you have just simply deeded or conveyed
everything you have in the way of property over to the union ?
Mr. Breavster. And a warranty deed, they own it.
The Chairman. They can sell it and get their money out of it ?
Mr. Brewster. They can sell it?
The Chairman. Or they can elect to keep the property in settle-
ment of the debt ?
Mr. Brewster. Yes, Senator McClellan, that is true.
The Chairman, I just want to get the record straight as to how it
is being handled.
Mr. Kennedy. Our records show, Mr. Brewster, that in addition
to the $77,6G0 that you owe the Western Conference of Teamsters,
that you also owe the Joint Council 28 the amount $11,100.
Mr. Brewster. Joint Council of Teamsters ?
Mr. Kennedy. 28. It is $10,000 on one loan and $1,100 on another.
Mr. Brewster. $10,000 and $1,100? I would like to check that.
I don't recall that.
Mr. Kennedy. You do not know about that ?
Mr. Brewster. No, sir. I think there must be an error there some-
where.
Mr. Kennedy. I think this $10,000 was from the retirement trust
fund. Do you remember borrowing $10,000?
Mr. Brewster. No, I don't, because that wouldn't be the joint
council. The joint council
Mr. Kennedy. I made a mistake. It is western conference and it
is retirement trust fund No. 1, and it is in addition to the $77,660.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1357
Mr. Bkeavstek. If that is on there, and I owe that, that will be
inchided in everything that I owe. Everything tliat 1 owe will come
out of what they have in the wari-anty deed.
Mr. Kexnedy. But you do not even know how much you owe.
Mr. Bkewster. I thought that it was that much. There must be
two figures there.
Mr. Kexkeoy. The Western Conference of Teamsters, $77,660, from
the retirement trust fund No. 1, $10,000, and from the Joint Council
28, $1,100.
Mr. Brewster. If it is $88,000
Mr. Kennedy. $88,760.
Mr. Brewster. O. K. If that will show that is what I owe, that
is what will be paid out.
Mr. Kennedy. They haven't received any moneys as yet?
Mr. Breavster. But they have received value for it.
Mr, Kennedy. Where are you going to live
Mr. Brewster. The deed is recorded.
Mr. Kennedy. If they sell your house, where are you going to
move to?
Mr. Brewster. I am going to try and rent it from them, and I will
pay rent every month.
Mr. Kennedy. Mr. Brewster, we have a list here of your United
States savings bonds. Perhaps we can correct that record. It does
show that you did not sell any bonds in 1955.
Mr. Brewster. Does it show that I sold any stock ? Did you check
that ?
Mr. Kennedy. No. This is T^nit^d States savings bonds.
Mr. Brewster. I had stock. I had
Mr. Kennedy. Could you t«ll us what stock you had that you sold?
Mr. Brewster. I had some stock on that West Virginia Turnpike.
I believe I had $10,000 there. I liad stock on that Mackinac, or what-
ever it is, that bridge that goes from Windsor to Detroit.
Mr. Kennedy. These are the bonds or stocks that you sold in 1955,
to put this deposit of $10,000 ?
Mr. Brewster. Yes, sir.
JVIr. Kennedy. You sold those West Virginia Turnpike bonds?
Mr. Brewster. Yes, sir.
Mr. Kennedy. In 1955?
Mv. ]iREWSTER. To the best of my memory, that is what I did. I
know that I got rid of everything.
Mr. Kennedy. And you got the $10,000 altogether and deposited it
in the bank ?
Mr. Brewster. That is what I believe.
Mr. Kennedy. That is a pretty large figure.
Mr. BREWsn:R. There would be quite a few of those in there back
and fourth, I think, that you will find, because it went up to aromid
$80,000.
Mr. Kennedy. That is the only one that we cannot account for;
that $10,000.
Mr. Brewster. I think that we can show that. You didn't account
for any of the bonds.
Senator Mundt. AYho is Jack Esterbrook, E-s-t-e-r-b-r-o-o-k, Mr.
Brewster ?
1358 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr, Brewster. He is a secretary of a local union in Portland, Oreg.
Senator Mundt. And who is Fred Verschueren, Jr.^ I think he
is the auditor of the western conference? You said his father
Mr. Brewster. No. He is the auditor of the joint council and
several other local unions in the building, 174.
Senator Mundt. And who is George Purvis ?
Mr. Brewster. George Purvis at the i^resent time is an organizer
for the Western Conference of Teamsters, and he is located at the
present time in Montana.
Senator Mundt. Our records show, Mr. Brewster, that Jack Ester-
brook owes the retirement trust fund $6,700, and Fred Verschueren
owes the Western Conference of Teamsters $13,340 ; George Purvis,
the organizer, owes the trust fund for retirement $3,500; you owe it
$10,000. There are also some locals involved. I thought in our dis-
cussion the other day, when we were talking about these loans, and
some constitutional amendments that might be made to safeguard
the dues of John C. Truck Driver in the future, you said that none
of the loans were made from these retirement fmids, that they were
kept inviolate, and that you had an Occidental policy, and that the
loans, good or bad, justified or not, were made from this western con-
ference fund which was accumulated from the 20-cent tax and from
the strike-fund tax, and so forth. Did I misunderstand you at that
time? -11
Mr. Brewster. Yes. I believe that we were talkmg entirely about
the joint pension, health, and welfare, that the employers are involved
in. I don't think we went into this discussion.
Senator Mundt. It could be.
Mr. Brewster. Yes. That was my
Senator Mundt. Well, will you explain what this retirement trust
fund No. 1 is? How is it accumulated and for what purpose?
Mr. BreA\^ster. It is the surplus on the amount of moneys that we
have as surplus on the retirement for the employees of local unions
in the 11 Western States. There is almost 900 that come under it
' at the present time.
Senator Mundt. 900 truckers?
Mr. Brewster. 900 employees. There is 2 funds, 1 and 2. They
were drawn up at different times. They were put into effect at dif-
ferent times. One is 7 cents, the other is 10 cents. The 10-cent one
is paid by a contribution from the individual ; the other one is not.
That one will draw $100 a month and the other one will draw $(0
a month.
Senator Mundt. Which is No. 1 ? Do you know i
Mr. Brewster. No. 1 is the one that they participate m themselves.
Senator Mundt. They pay 10 cents per month ?
Mr. Brewster. Yes, sir; they pay 10 eents a month m that.
Senator Mundt. Each dues-paying member pays 10 cents a month
into a retirement fund? Then there are about 900 employees in
the fund.
Mr. Brewster. That is true.
Senator Mundt. And that fund is accumulated for the purpose ot
paying them retirement benefits when they reach a certain retirement
age, or are incapacitated and have to retire ; is that right ?
Mr. Brewster. At the age of 65— it isn't compulsory retirement—
at the a^e of 65, the one that they receive $100 a month is put in a
niPROPER ACTIVITIES IN THE LABOR FIELD 1359
trustee, kept in a trustee, so that tliey receive that when they do retire.
In otlier words, if they stayed there for 5 years, roughly speaking,
they would get about $6,000 as a check when they retire. Then they
would start getting the $100 a month after that. But they do not get
the $70 a month until the day of retirement.
Senator Mundt. This is one of the types of funds that I was men-
tioning the other day when I said it seemed to me that legislation
should be enacted which would require the same kind of custodianship
over a retirement fund by Federal law as would be provided for people
who buy an insurance policy in, say, Penn Mutual, or Prudential Life,
or if they deposit their money in a national bank. I think you told
me that you felt you would support that kind of legislation. Am I
right ?
Mr. Brewster, That is right. I am not opposed to that type of
legislation that will keep those intact just 100 percent.
Senator Mundt. You have a total here of $415,590 borrov;ed from
that fund. Not all of it, by any means, by individuals, but some of
it by the Western Conference of Teamsters itself, $245,000, and by the
Joint Council No. 37, $90,000. It seems to me that those funds should
not be intermingled, either with loans made to local unions or teamsters
associations, or, certainly, to union officials, because these are just
pretty important fimds to the fellow who pays the dues into the or-
ganization. If bad judgment, bad luck, or bad economic times dissi-
pate that fund, those people who depend on retirement checks at the
age of 65 are just going to get gypped, are they not?
Mr. Brewster. No. This is absolutely a surplus. The amount of
employees that we have that come under it are protected. This fund
has been increasing from time to time. This is not a part of the funds
that you would say that would stop them from getting their 100 in one
instance and $70 in the other. It is absolutely surplus.
Senator Mundt. It says in the retirement trust fund
Mr. Brewster. Well, that is absolutely surplus. We have protected
that to the point that it will not affect anyone that is employed, but
he will get his full amount of insurance at the day of retirement for
the rest of his natural life.
Senator Mundt. Mr. Brewster, if you have a surplus of $415,000
with which to make capricious loans to individuals, then it must follow
that you are taxing them too much for their retirement, or else they
ought to get a bigger retirement than $100 a month to take care of the
increased cost of living. Wouldn't that be true ?
Mr. Brewster. Well, the last part X)f it, I will say this to : At a
time that we have had sufficient experience, it is our objective to give
them more than that money. What we are trying to do, and we
haven't solved it yet, is try to give a little bit to the widow when the
man dies himself.
Senator Mundt. My only concern is that it just seems to me that
funds that are kept in trust for the widow, for the fellow who gets
injured in line of duty, or the fellow who reaches 65 years of age,
should be safeguarded with altogether different types of safeguards,
probably, or at least more complete safeguards than just the ordinary
dues that he pays to operate his organization. Those come in a differ-
ent category.
89330— 57— pt. 4 17
1360 IMPROPER ACTIVITIES IN THE LABOR FIELD
But these are the same kinds of funds tliat you put into an insur-
ance company.
Mr. Brewster. In an insurance company, Senator, they are not
confined to put their money in just banks or something. There is a
certain percentage of the surphis, or certain percentage of the earn-
ings that they have to go into that.
Senator Mundt. If it is a trust company or a national bank, there
are certainly protections against loaning the money to the various
officers, or the subsidiaries of the insurance company, or the under-
writers.
Mr. Brewster. They are all protected by security, and so forth.
I know this
Senator Mundt. I am not questioning whether these loans are good
or bad. I am questioning the policy of making loans of this kind
with funds of this type which are kept in trust for people in their
hour of need. I think that we must be sure that when that hour of
need comes, the man gets the money to which he is entitled.
Mr. Brewster. On all of those loans, we have security, and if we
had to have that money, we would get that within a period of 30 days.
Senator Mundt. Tliat is always a hope, but we never know. If
economic conditions go down, none of us can pay the money that we
borrow as we anticipated. You recognize in our kind of economy,
those things can happen. It is against that kind of contingency that
I think we ought to have Federal legislation which would say that
funds of tliis type must be safeguarded. If depression does come, a
fellow needs the money more than he does at other times; is that
Mr. Brew\sit.r. The same as othei^, insurance laws, i am not
opposed to it. o -^d
Senator Mundt. Would you go so far as to say you favor it ?
Mr. BREW^STER. O. K.
Senator McNamara. Mr. Chairman?
The Chairman. Senator McNamara.
Senator McNamara. There is an indication that when Mr. Sweeney
died, he owed the Western Conference of Teamsters considerable
amounts of money. Do you know about that ?
Mr. Brewster. Yes, sir. „ . -,
Senator McNamara. Was there any attempt to collect it, or was he
solvent upon his passing? You are still carrying it on your books,
I see.
Mr. Brewster. Yes. His home, I believe, would cover it, and his
Senator McNamara. He has been dead for how long, about a year?
Mr. Brewster. No. Mr. Sweeney died the 6th of November— wait
a minute— the 2d of November, last year.
Senator McNamara. And the estate has not been settled (
Mr. Brewster. It has not been probated yet.
Senator McNamara. But you are making an attempt to collect
this money for the union ? ^ i .i . i ^
Mr. Brewster. Absolutely. Within the next 2 weeks that ought
to be finished and be finally settled. ,, ^ ^i
Senator McNamara. You have every reason to believe tliat tlie
$28,000 will be collected ?
Mr. Brewster. I am positive. I am positive.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1361
Senator McNamara. Thank 3'ou.
Mr. Kennedy. Mr. Brewster, I now want to go into a matter of
some considerable im])ortance that perhaps does not involve you di-
rectly, but you have Hrsthand information about it, or more informa-
tion perhaps than anyone else.
I want to ask you some questions about it. That is the question of
the loans to ISIr. Beck.
(The witness conferred w^ith his counsel.)
Mr. Kennedy. I want to ask you : Do you know of any checks made
payable to Dave I^eck which were considered as loans for any year
from 1949 through 1952, inclusive?
Mr. Brewster. Can I see my attorney ?
Mr. Kennedy. Do you want me to read it again to you?
Mr. Brewster. I heard it, but can I just discuss it, please?
(The witness conferred with his counsel.)
Mr. Kennedy. Can I read that to you again ?
Mr. Brewster. Yes, please.
Mr. Kennedy. Do you know of any checks made payable to Dave
Beck wdiich were considered as loans for any year from 1949 through
1952, inclusive?
Mr. Brewster. I could not identify and remember of any checks
that were made out to Dave Beck as a loan. As I explained before,
I signed checks in blank. But as far as my memory serves me, I do
not remember of the checks being made out when I signed them,
Mr. Kennedy. I have another question. Did you consider any of
the money that went to the public relations accomit in Ix)s Angeles as
loans to Dave Beck ?
Mr. Brewster. I did not.
Senator Mx;ndt. At any time, Mr. Brewster, wdien you were sign-
ing checks in blank, was the authorized cosiofner of those checks Dave
Beck?
Mr. Brewster. Yes, sir. This time that they refer to, he had the
job that I have now. He was chairman of the western conference, and
I was secretary.
Senator Mundt. During the time when the checks which you signed
were blank, they would not become eifective checks until they were
signed by Dave Beck ?
Mr. Brewster. That is true.
Senator Mundt. So that during that time, conceivably, you could
have had signed checks in your office on which he designated the payee
without your knowing who the payee :\vas ?
Mr. Brewster. That is true.
Senator Mundt. That ])ayee could have been or could not have been
Dave Beck, as the evidence will disclose?
Mr. Brewster. That could be done.
Senator Mi' ndt. That is correct.
The Chairman. But when those checks came back, when they were
cashed and came back, it would be your duty as secretary-treasurer
to enter them in the books, would it not, or see that they were entered,
and would you not then get the information, and did you not get such
infoi-mation, by reason of the ])Osition you occupy ?
Mr. Brewster. Senator, I think it has already came out in testimony
that I relied on the bookkeeper for all of that data and didn't take that
1362 IMPROPER ACTIVITIES IN THE LABOR FIELD
responsibility myself. I want to say this, that I have realized since
I have been here, more than any time in my life, that that is my re-
sponsibility, and I am positive that I will be right on top of everytliing
in the future.
The CHAiEaiAisr. In other words, you recognize it is kind of a poor
way to run a railroad ?
Mr. Brewstek. Not very good.
Mr. Kennedy. I have another third question I want to ask you.
Did you consider moneys that went to Mr. Nathan Shefferman as loans
to Dave Beck ?
Mr. Brewster. I have no knowledge, to the best of my memory, of
that transaction whatsoever. That was strictly between Dave Beck
and Shefferman. As I testified, I had very little business with Shef-
ferman, practically nil. Anything, any transaction, between Dave
Beck and Shefferman, I had no knowledge whatsoever.
Mr. Ivennedt. Moneys that went from the Western Conference of
Teamsters to Mr. Nathan Shefferman you have no knowledge of; is
that right?
Mr. Brewster. That is right.
Senator Mundt. Then your answer to that question would be no.
He asked you. Did you consider such transactions as loans to Dave
Beck?
Mr. Brewster. I don't know anything about the transactions.
Mr. Kennedy. Tell me this : Did Mr. Dave Beck tell you during the
period of time 1949 through 1952 that the moneys that were being sent
or given to Mr. Nathan Shefferman were actually loans to himself?
Mr. Brewster. No, sir.
Mr. Kennedy. The contractor for the Western Conference of
Teamsters has been Mr. Lindsay, is that right?
Mr. Brewster. That is true.
Mr. Kennedy. Mr. Jolui Lindsay ?
Mr. Brewster. John Lindsay is correct.
Mr. Kennedy. Did you consider any of the moneys that were sent
or given to Mr. John Lindsay as loans to Mr. Dave Beck?
Mr. Brewster. No, sir. I had no information to that effect at all.
Mr. Kennedy. Were you ever told by Mr. Dave Beck that the
moneys that were being given or sent to Mr. John Lindsay were, in
effect, loans to him, Dave Beck?
Mr. Brewster. I was not.
Mr. Kennedy. Could you tell the committee what was being con-
structed for the Western Conference of Teamsters during 1952 which
Mr. John Lindsay was working on ?
Mr. Brewster. Yes, sir. We constructed a building at 553 John
Street, m Seattle.
Mr. Kennedy. That is the cornor of Taylor and John Streets?
Mr. Brewster. Well, now, the new building goes to the corner,
counselor, it goes up to the corner. But at that time there was a small
building on the corner at that time that it adjoined. We moved that
building off to another location, and we are renting that at the present
time. That is part of the building association. We built that build-
ing, starting building it, I believe, in about 1952 — was it?
Mr. I^.NNEDY. 1950, 1 believe.
Mr. Brewster. I don't think it was that far back.
Mr. Kennedy. You took the peiTnit out in September of 1950.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1363
Mr. Bkewster. Well, I didn't think it was that far back, and it
might have been after the permit. It might have been quite awhile
before — well, I think we moved in there in 1955.
Mr. Kennedy. Let's start back in 1950. How much work was done
by Mr. Lindsay between 1950 and 1952?
Mr. Brewster. The only work that he has done, to my knowledge,
for the Western Conference of Teamsters, is that construction that
you probably know of out there at 553 John Street.
Mr. Kennedy. That is a 1-story office building ?
Mr. Brewster. No. It is considered a 3-story office building. The
lower level is up a ways so that we use that for offices and so forth.
It is really a 3-story Ijuilding. I think there is, roughly speaking,
about 6,000 square feet in the building.
Mr. Kennedy. ^"Vliat was the cost of that building to the West-
ern Conference of Teamsters ?
Mr. Brewster. I have seen those figures, and I have seen an esti-
mate of the cost of the new one. I might get them a little twisted.
I think the new one is a little bit more than the old one. I would say,
from just memory on the figures, around $175,000.
Mr. Kennedy. $175,000 for the one building?
Mr. Brewster. For the one building, yes, sir.
Mr. Kennedy. Do you get those figures from how much was paid
out to Mr. Lindsay, or do you get those figures from what the value
of the building was ?
Mr. Brewster. No, I believe that that job was kept separate. I
don't know whether you have ever built a building, but the contractor
comes in and he says that he needs money and so forth, and we give
him the check for the money, and he has to pay labor and materials
and so forth.
Have you got the figure of that building there ?
Mr. Kennedy. We have the cost of the building here, the owner's
value, as $25,000.
Mr. Brewster. That was the building — wait. We are getting
mixed up.
That IS the small building that was built, I think, in 1950 that was
the nisurance building, the administration building, that we moved off.
Mr. I^NNEDY. What about this other building you are talking
about? Wlien did that start?
Mr. Brewster. I think that started in 1953.
Mr. Kennedy. I am not talking about 1953. I am talking about
1950, 1951, and 1952. There were other buildings started in 1953. But
1950, 1951, and 1952, other than this one building of $25,000 is what I
am talking about.
Mr. Brewster. I was under the impression it was more than that.
I know it was closer to $35,000.
Mr. Kennedy. Let us assume it was $35,000.
Mr. Brewster. Yes.
Mr. Kennedy. Could you explain why the Western Conference of
Teamsters paid to Mr, John Lindsay from January 9, 1951, throuoh
December 20, 1951, $91,840?
Mr. Brewster. I cannot.
Mr. Kennedy. Can you explain why the Western Conference of
Teamsters paid to Mr. John Lindsay from Januarv 29, 1952, to Decem-
ber 4, 1962, $54,838.80 ? ^55
1364 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. I cannot.
Mr. Kennedy. Did you know that Mr. Beck was doing some con-
struction work at his own home at that time ?
Mr. Brewster. I know that there was construction out there at that
time; yes. . i « .
Mr. Kennedy. Do you know that during this period of time one ot
the things that he was building was a swimming pool ?
Mr. Brewster. I don't know when that swimming pool was put m.
Mr. Kennedy. Do you know that Mr. Lindsay did some of his con-
struction work, for jNlr. Da\^e Beck ?
Mr. Brewster. I believe he was the contractor.
Mr. Kennedy. Do you know that he did some of the construction
work on Mr. Norman Gessert's home ?
Mr. Brewster. I do not. But they were all in that area. I think
there were 5 or 6 homes around there.
Mr. Kennedy. Property which was owned by Mr. Dave Beck; is
that right ?
Mr. Brewster. That is true.
Mr. Kennedy. And Mr. Jack Stackjjoole's home?
Mr. Brewster. Stackpoole was another one that had a home.
Mr. Kennedy. And that was a home within the property owned by
Mr. Dave Beck ; is that correct ?
Mr. Brewster. That is right.
Mr. Kennedy. Did you know the construction work for those homes
was going on during this period of time?
Mr. Brewster. I believe it was. I think it was about the same time.
T don't know the exact dates, but I know the comparative time, I be-
lieve, which was about that time.
The Chairman. Mr. Brewster, do we understand that during the
period of time referred to that all that the western conference built
was one small building that cost approximately $35,000, according
to your best estimate ?
Mr. Brewster. As far as I remember.
The Chairman. And during that same period of time, you paid
out to this man Lindsay, the western conference paid to the man
Lindsav, a contractor, a total of $146,678. Can you explain where
that $111,000 went to? .
Mr. Brewster. I cannot. The only thing that I can say is that
was done, and a check that I had signed in blank was made out.
The Chairman. You had signed the checks in blank?
Mr. Brewster. I think that was the way that it must have been
done.
The Chairman. Well, you signed them as secretary-treasurer,
whether you signed them in blank or signed them after they were
tilled out^?
]\Ir. Brewster. That is true. _ .
The Chairman. During that period of time, Mr. Beck Avas building
his own home; was he?
Mr. Brewster. Yes ; I believe he was.
The Chairman. There is no other contract, no other construction
anywhere that the Western Conference of Teamsters Avould owe Mr.
Lindsay for, except the one small building?
Mr. Brewster. That is all that I remember.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1365
The Chairman. Then if you signed these checks in bhink, who else
had to sign them before tliey could be cashed, during that period of
time?
Mr. Brewster. Mr. Beck.
The Chairman. Mr. l^eck. Was there an entry made on the books
anywhere, at any time during that period, that these moneys would be
in advance or ]3aid to ^Nlr. Lindsay for the benefit of Mr. Beck for the
construction of his homef
Mr. Brewster. I do not recall any. I don't remember of any.
The Chairman. Was any notation made on the books, any entry,
indicating that this money was loaned to Mr. Beck during that time?
Mr. Brewster. I have no memory of a record.
The Chairman. You had no knowledge that the money was being
used for that purpose?
Mr. Brew\ster. I didn't.
The Chairman. Or that it was being advanced in the nature of
loans to ]Mr. Beck ?
Mr. Brewster. Only to the point that by that time, Mr. Beck told
me that he was going to liave to bori'ow some money, and that he had
taken it up with members of the policy committee.
The Chairman. You were a member of the policy committee, were
you not ?
]Mr. Brewster. Yes, sir.
The Chairman. Did he take it up with you ?
Mr. Brew^ster. Well, he talked to me about it then. That is what
I am talking about.
The C^HAiRMAN. I mean, did he take it up at a policy meeting?
Mr. Brewster. Not at a meeting ; no, sir.
The Chairman. It was not taken up at any meeting of the policy
committee ?
Mr. Brewster. He said that he talked to them as individuals.
The Chairman. Just talked to them as individuals ?
Mr. Brewster. Yes.
The Chairman. Were there any minutes made of those conversa-
tions ?
Mr. Brewster. I don't recall any.
The Chairman. Is there any record in the minutes of the policy
committee of the western conference reflecting these transactions?
Mr. Brewster. I do not believe there is.
The Chairman. Proceed, Mr. Counsel.
(The witness conferred with his counsel.)
Mr. Kennedy. Mr. Chairman, could I call Mr. Bellino as a witness
on this point ?
(Members present at this point : The Chairman, Senators McNa-
mara, Mundt, and Goldwater.)
The Chairman. Mr. Bellino, take the stand, please.
TESTIMONY OF CARMINE S. BELLINO— Resumed
The Chairman. Mr. Bellino, you have been previously sworn.
Proceed, Mr. Counsel.
(At this point, Senator McXamara withdrew from the hearing
room.)
1366 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Mr. Bellino, you have examined the books of the
teamster organization, including the Western Conference of Team-
sters and the Joint Comicil 28 Building Association ?
Mr. Belling. Yes, sir.
Mr. Kennedy. In those books that have been made available to you,
and the records, do you find anywhere in any of them any indication
that there were any loans to Mr. Dave Beck ?
Mr. Belling. No, sir.
Mr. Kennedy. Do you find, in fact, that there were no loans to Mr.
Dave Beck?
Mr. Belling. That is correct.
IVIr. Kennedy. Have you examined the Joint Council 28 Building
Association loans receivable ?
Mr. Belling. Yes, sir.
Mr. Kennedy. And you have made up a mimeographed paper based
on your findings on that study ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Is there listed thereon the records that they make
available to the Treasury Department, on form 990 ?
Mr. Belling. Form 990, the annual return of organizations exempt
from income tax under section 101.
The Chairman. May I ask the witness if this mimeographed form
which has been prepared, if it is a recapitulation of the records, taken
actually from the records of this joint council, 28 ?
Mr. Belling. It is a recapitulation of the information contained
from the records of Joint Council 28 Building Association.
The Chairman. All right. In other words, this mimeographed
statement here actually truly reflects the record ?
Mr. Belling. Yes, sir.
The Chairman. All right.
Mr. Kennedy. There is one correction; is there not, Mr. Bellino?
Mr. Belling.' There is one correction on August 1954, the cash
receipts book reflects a loan payment made by Dave Beck of $200,000
and not $20,000.
Mr. Kennedy. Looking over the form 990, did you find that the
loans receivable as of December 31, 1953, was $7,422.89 ?
Mr. Belling. Form 990 so reflected, $7,422.89, and a financial state-
ment in their files reflected who owed that money listed as an asset
of the Joint Council of Teamsters No, 28 Building Association.
Mr. Kennedy. That was the only money that was owed to the Joint
Council 28 Building Association ; is that right ?
Mr. Belling. According to the records ; yes.
Mr. Kennedy. According to its own records and the records filed
under oath with the Treasury Department ?
Mr. Belling. Yes, sir.
Mr. Kennedy. For the balance, December 31, 1954, you found
$4,000; is that right?
Mr. Belling. On the 1953.
Mr. Kennedy. And then December 31, 1954?
Mr. Belling. At the end of 1954, on a financial statement which
they rendered, there is $54,000.
Mr. Kennedy. All right. Let us go down to the schedule at the
bottom of the page. At the beginning of the year January 1, 1950,
you found the loans receivable to be $15,638.40; is that right?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1367
Mr. Belling. Yes, sir.
Mr. Kennedy. On that form 990, at the end of the year, it showed
$17,773.66?
Mr. Belling. Yes, sir. On the return made for the year 1950,
those are the beginning and ending figures so reflected.
Mr. Kennedy. And the year 1951, they say that they were only
owed $17,773.66, right?
Mr. Belling. Yes, sir.
Mr. Kennedy. And then at the end of the year it is $14,034.42?
Mr. Belling. Yes, sir.
The Chairman. These forms, I might explain, are filed at the end
of the year, and they say what the situation is at the beginning of the
year and the end of the year ?
Mr. Belling. That is correct.
Senator Mundt. Are these forms filed with the Federal Govern-
ment ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Do you have the forms here?
Mr. Belling. We have copies of them which they provided us from
their files.
Mr. Kennedy. The teamsters ?
Mr. Belling. The teamsters ; yes.
Senator Mundt. Are they accompanied by a sworn statement as to
accuracy ?
Mr. Belling. Yes, sir.
Mr. Kennedy. And they are signed by Frank Brewster; is that
right?
Mr. Belling. The 1951 form has the name of Frank Brewster ap-
pearing, and Donald McDonald.
The Chairman. I would like to have each one of tliose inserted into
the record, the forms that you have obtained, copies of which you have
obtained from the files of this Joint Council 28 Building Association.
Let them be made exhibit 112-A, B, C, D, E, and F.
There are six of them ; is that correct ?
Mr. Belling. Yes, sir.
The Chairman. Do you have all six ?
Mr. Belling. Yes, sir.
The Chairman. For the years, 1950, 1951, 1952, 1953, 1954, and
1955?
Mr. Belling. Yes, sir.
The Chairman. They may be made exhibits as indicated by the
Chair, for reference.
(The documents referred to were marked "Exhibits 112-A, 112-B,
112-C, 112-D, 112-E, and 112-F," for reference and will be found in
the appendix on pp. 1483-1502.)
Mr. Kennedy. In the year 1952, the figure at the beginning of the
year was $14,034.42, which is, of course, the same as the end of the
year of 1951. ?
Mr. Belling. That is correct, sir.
Mr. Kennedy. Then at the end of 1952, it is $10,311.17?
Mr. Belling. $10,811.17.
Mr. Kennedy. Then the beginning of the year 1953, again, it is
$10,811.17?
Mr. Belling. Yes, sir.
1368 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. And which would be the same as the end of the year
1952; right?
Mr. Belling. That is correct.
Mr. Kennedy. Then at the end of the year 1953, it is $7,422.89?
Mr. Belling. Yes, sir.
Mr. Kennedy. So at the end of December 1953, the Joint Conncil 28
Bnilding Association said that all that they were owed was $7,422.89 ?
Mr. Belling. That is correct.
Mr. Kennedy. You will find in the year 1954, the beginning of 1954,,
that the building association then says that they were owed $257,-
422.89 ?
Mr. Belling. Yes, sir. What they did there, they plugged the-
figure.
Mr. Kennedy. By $250,000?
Mr. Belling. By $250,000 ; yes, sir.
Mr. Kennedy. They added $250,000 to the figure?
Mr. Belling. Yes, sir.
The Chairman. In other words, they just wrote 25 in front of the
$7,422.89 ?
Mr. Belling. Yes, sir.
The Chairman. In other words, on December 31, the last day of
1953, their records show that they were owed only $7,422.89 I
Mr. Belling. Yes, sir.
The Chairman. The next morning, January 1, by placing 25 in
front of the $7,422.89, the next morning they had their records shoAving
they are owed $257,422.89 ? ^
Mr. Belling. Well, I wouldn't say it was the next morning. It
was a year later that they made their records show. They went back.
The Chairman. I mean after their records were given a little treat-
ment, they showed as of the next morning that figure ?
Mr. Belling. Yes, sir.
The CHAIR3IAN. All right. .
But do you have the original record tliat indicates where the change
was made ?
Mr. Belling. Yes, sir. Not the original, but we have the copy which
was filed. That is the only notation. You see, the records which are
kept are not what you would call really accounting records of double-
entry system. They are just a receipts and disbursements book, and
they could very easily just lose track of any assets. Of course, they
could put back the assets any time they want to, if they wanted to.
The Chairman. In other words, there is a discrepancy unless a loan
was made in the morning. Unless that $250,000 loan was made in the
morning or on the day of tlie first of the year 1954, then tliese figures
are inaccurate, untruthful, and not a correct statement of their affairs ?
Mr. Belling. They were false ; yes.
The Chairman. Do you find anywhere in their records where, on
January 1, 1954, they show any loans amounting to $250,000 ?
Mr. Belling. Xo, sir.
The Chairman. They show no records of any loan on that day?
Mr. Belling. No, sir.
The Chairman. Either in that amount or any other amount?
Mr. Belling. That is correct.
Mr. Kennedy. Mr. Bellino, is it true that the Internal Revenue De-
partment became interested in Mr. Beck's activites during 1954?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1369
Mr. Bellixo. They became interested in January of 1954, and
tliey interviewed liini in March of 1954.
Mr. Kennedy. In the middle of 1954, in August of 1954 specifically,
does a check for $200,000 appear in the books of the Building Associa-
tion Joint Council 28 i
Mr. Belling. Yes, sir. The cash receipts for the month of August
1954 contains an entry which reads B & B Investment Co., loan pay-
ment, Dave Beck, $200,000.
Mr. Kennedy. Let me ask you again: Were there any records of
any knid that show that this loan of $200,000 had been made to Dave
Beck ?
Mr. Belling. No, sir.
Mr. Kennedy. In any of the interviews that you have had with
any of the officials of the teamsters union, did anybody laiow that any
loans were being made to Dave Beck during this ])eriod of time, prior
to 1954? ^
Mr. Belling. No direct loans of the nature where checks were
issued or where records were kept saying that Dave Beck owed so
much to the union.
Mr. Kennedy. We have found, have we not, tliat certain moneys
of the Western Conference of Teamsters and certain teamster unions
ended up in the account of Mr. Dave Beck, were used for the benefit
of Mr. Dave Beck?
Mr. Belling. Yes, sir.
Mr. Kennedy. At the end of the year, December 31, 1954, Ave find
that the loans receivable are then $54,000 ?
Mr. Belling. $54,000. Actually, it is only $4,000 from the loan
records.
Mr. Kennedy. Actually only $4,000, but still the $50,000 to pay ;
is that right?
Mr. Belling. Yes.
Mr. Kennedy. And that goes on into the year 1955, $54,000 at the
beginning and $54,000 at the end of 1955 ?
Mr. Belling. Yes, sir.
Mr. Kennedy. But the only loan that was shown has nothing to do
with Dave Beck, this $4,000 ; is that right ?
Mr. Belling. That is coiTect.
Mr. Kennedy. $3,500 to the club of Veterans of Foreign Wars and
$500 to the Olympic Steam Heat ?
Mr. Belling. That is correct.
The Chairman. Do I understand that in this $54,000 shown here
to be owed on the last day of the year 1954 and the first day of the
year 1955, and also on the last day of the year 1955, that there is no
record showing those loans other than $4,000?
Mr. Belling. That is correct.
The Chairman. In other words, there is nothing to indicate who
owes the other $50,000 ?
Mr. Belling. Not from their records, except their own figure of
$50,000 added. But there is no record notation showing even that
$50,000.
The Chairman. But it does not identify the debtor ?
Mr. Belling. No, sir ; that is correct.
The Chairman. So someone examining tlie books would not know
who owed the money ?
1370 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Belling. That is correct.
The Chairman. Except the $4,000 ?
Mr, Belling. That is correct.
The Chairman. $50,000 of it is unexphiined and not identified,
insofar as the records are concerned ?
Mr. Belling. That is correct.
Mr. IvENNEDY. Were there any other moneys paid to the teamsters'
miion by Mr. Dave Beck since 1954 ?
Mr. Belling. Yes, sir.
Mr. Kennedy. How much money was paid ?
Mr. Belling. A total of $70,110.16 in addition to the $200,000.
Mr. Kennedy. Making a total of how much ?
Mr. Belling. $270,110.16.
Mr. Kennedy. This is the amount of money that he said he had
been borrowing from the union ?
Mr. Belling. That is correct.
Mr. I^nnedy. And this is the amount of money that we have
found that there is no record of that he borrowed the money from the
union ?
Mr. Belling. That is correct.
The Chairman. But we did find that that amount or a similar
amount was taken from the union and used for his personal benefit ?
Mr. Belling. That amount and possibly more.
Mr. Kennedy. From the years that we have examined, from 1948
to 1952; is that right?
Mr. Belling. We have examined from 1949 and 1950 to 1955.
Mr. Kennedy. But the amount of money that we have found that
was taken from the teamsters' union covered the years from 1948
through 1952?
Mr. Belling. 1953, part of.
Mr. Kennedy. Part of 1953 ?
Mr. Belling. Yes, sir.
Mr. Kennedy. And that amounts to at least $270,000 ?
Mr. Belling. Yes, sir.
Mr. Kennedy. And there is no record whatsoever of those moneys
going out as loans to Mr. Dave Beck ?
Mr. Belling. That is correct.
Mr. Kennedy. There is no record at all showing that they were
listed as loans to Dave Beck ?
Mr. Belling. As loans or advances to Dave Beck.
Mr. Kennedy. And we found in many instances, did we not, that
the moneys went through third parties and ultimately ended up for
the benefit of Dave Beck ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Such as the money being sent to a public-relations
account in Los Angeles and then being sent from there to Chicago?
Mr. Belling. That is correct.
Mr. Kennedy. We found that that money was ultimately used for
the benefit of Mr. Dave Beck ; is that correct ?
Mr. Belling. Yes, sir.
Mr. KJENNEDY. And there is nothing in the record that indicates or
shows that that was listed as a loan to Mr. Dave Beck ?
Mr. Belling. That is correct.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1371
Mr. IvENNEDY. Or that any of the officials of the union knew that
that money was ending up for the benefit of Mr. Dave Beck ?
Mr. Belling. That is correct.
^ The Chairman. Is there any thing in the minutes anywhere grant-
ing the loan, authorizing the loan to Mr. Dave Beck ?
Mr. Belling. No, sir ; not the minutes made available to us.
The Chairman. I understand some of them are not available.
Mr. Belling. That is right.
Mr. Ivennedy. jNlr. Chairman, we have finished as far as Mr. Dave
Beck's loans or Mr. Dave Beck's financial transactions at this time
We have another matter that we felt should go into the record
prK)r to Mr. Brewster leaving the city. Shall we go on with that?
The Chairman. Go right ahead.
(Members present at this point: The chairman, Senators Mundt
and Gold water.)
TESTIMONY OF FRANK W. BEEWSTER, ACCOMPANIED BY HIS
COUNSEL, JEERY N. GEIFFIN AND JOHN K. PICKENS— Eesiimed
The Chairman. Mr. Brewster, before they go to another matter,
you have heaxd the testimony of Mr. Bellino, the accountant of this
committee who has checked the records. During that period of time,
did you have any knowledge that Mr. Beck owed this Joint Council
28 Building Association loans amounting to $250,000?
Mr. Brewster. I did not.
The Chair3ian. You never knew it ?
Mr. Brewster. No, sir.
The Chairman. When did you first learn about it?
Mr. Brewster. I don't remember when it was.
The Chairman. When did you first learn about it and how ?
Mr. Brewster. I learned about it when it was paid back, I believe.
The Chairman. That is your first knowledge of it?
Mr. Brewster. Of the amounts. I knew that he owed, or he told
"^^^i^^y^® ^^^^ borrowing. But if you mean the amounts I first
, T}]^ Chairman. Did he tell you that he was borrowing from this
building association of the joint council ?
Mr Brewster. Yes, sir. I think I testified to that effect, that I
said that he told me that he was going to have to borrow
The Chairman. You testified that he told you he was going to have
to borrow some money.
Mr. Brewster. Yes, and then I took it for granted that he did.
The Chairman. He may have. But did you take it for granted
without his telling you that he was borrowing union funds?
Mr. Brewsit:r. No, I didn't.
Ti'^^^^i,^^'^^^^^'^^' ^^ ^^^^ ^^^^^ ^^^ granted he made arrangements
like other people and borrowed some money from the buildino- out
there, but you had no knowledge ? *
Mr. Brewster. No, sir.
The Chairman. No information ?
Mr. Brewster. No, sir.
The Chairman. And you indulged no assumption that he was
borrowing money from the union ?
Mr. Brewster. Not to this amount.
The Chairman. Sir?
1372 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Brewster. Not to this amount. That is certain.
The Chairman. To what amount did you have an assumption ?
Mr. Brewster. I didn't know any amount, but I didn't feel it would
be anything like this.
The Chairman. Mr. Brewster, if you had any reason to think he
was borrowing- money, would it not be your duty, occupying the posi-
tion you did, to know the amount, and see that proper records were
kept of it ?
Mr. Brewster. Mr. Senator, I trusted the man.
The Chairman. I am not talking about that. I am talking about
your duty.
Mr. Brewster. Well, duty and trust are probably diiferent. My
duty I neglected, the trust I did not.
The Chairman. Your trust has been misplaced, do you feel?
Mr. Brewster. Do I have to answer that?
The Chairman. No, you do not have to answer that.
All right, proceed.
Mr. Kennedy. While we are getting this other document, Mr. Brew-
ster, I was wondering if you are familiar with an interview that Mr.
Beck gave to Mr. Mollenhoff of the Washington Bureau of the Des
Moines Register in December 1954, in which he said :
"No union official can justify borrowing .$10 or $10,000 through any employee
pension or insurance fund, or from a unicm's ]>etty cash," I'resident Dave Beck
of the teamsters declared Tlmrsday. "It is wrong and not in the best interest of
the union members. I won't put up with it from the highest or the lowest union
member."
Mr. IiREWSTER. I don't recall that speech.
Mr. Kennedy. Do you think that what he had in mind was that you
cannot borrow but it is all right just to take it?
(The witness conferred with his counsel.)
Mr. Brewster. I don't think I care to comment on that.
Mr. Kennedy. O. K.
I want to see if you will identify for us this form 990, where you
have at the beginning and the end of the calendar year 1953 on the
loans $7,422.89.
(Document handed to witness.)
(The witness conferred with his counsel.)
The Chairman. For the record, what is the document presented to
the witness ? It is a photostatic copy of what ?
Mr. Kennedy. It is exhibit No. 112, Mr. Chairman, the form 990,
Mr. Brewster. It is form 990,
Mr. Kennedy. What do you read the loans receivable for the end
of the year 1953, up there at'the top ? $7,422 ?
Mr. Brewster, $7,422.89,
Mr. Kennedy. That is for the end of year 1953?
Mr. Brewster. Yes, because it was made May 4,
Mr, Kennedy, Then it says at the bottom there, where you signed :
We, the undersigned, president, or vice president, and treasurer or assistant
treasurer of the organization for which this return is made, declare under the
penalties of perjury that this return has been examined by me and is to the
best of my knowledge and belief, a true, correct, and complete return made in
good faith for tlie taxable year stated pursuant to the Internal Revenue Code and
the reyulatifins issued thereunder.
Then it is signed.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1373
Now I ask yon to examine for the year 1954. Tell us wliat it says
there for the beg-inniii^- of the year 1954.
(Document handed to witness.)
Mr. Brewster. Under ''Notes receivable," $257,422.89.
.JV' I'^^.xNEDY. C^ould you tell us how it grew, from December 81,
1953, to January 1, 1954, $250,000 ?
Mr. Brewster. No, I coukhrt.
Mr. Kennedy, ^^ou signed both of them.
Mr. Brewster. I know it. I told you that I just signed them as a
matter of form. I didn't examine.
Senator Mundt. Who prepared the statement that you signed 5*
Mr. Brewstcr. Our bookkeeper. I think it is the practice of pretty
near e^'erybody m the United States that is in a labor organization,
lliey iiave their bookkeeper, accountant, or whatever it is, and thev
come m and say ^'I made this out. Sign it."
Senator INfuxDT. Had you any reason to ever doubt the honesty of
your bookkeeper?
Mr. Brewster. No, I didn't. I doivt know what happened. I tliink
that is really common procedure.
Senator AIundt. I think that is right, but I was just wonderino-
if there was any reason that you could think of why your bookkeeper
would pad up that amount by $250,000.
Mr. Brewstcr. No. I am at a loss.
Senator Mundt. When you signed it, you would presume, I assume,
that your bookkeeper had found in the books something to iustify
the figure of $250,000 ; is that correct ? ^ J J
Mr. Brewster. That is correct.
Senator Mundt. And our examination of the books fails to disclose
that. You can think of no reason ? Your bookkeeper has never been
under suspicion or fired for deception or anything of that kind ? You
have every reason to believe that your bookkeeper is honest ; is that
right ?
Mr. Brewster. I did, yes. He has been there, I think, 9 years, or
something like that.
Senator Mundt. Is the bookkeeper still on the job?
Mr. Brewster. Yes, he is.
Senator Mundt. He is the same bookkeeper ?
Mr. Brewster. Yes, sir.
The Chairman. Mr. Brewster, would that not alert your attention
on the amount of those loans rejwrted for January 1, 1954, since they
had been so small previous to that? Would that not kind of startle
you and cause you to be interested in finding out what happened?
Mr. Brewster. As I said before, I just took this as a matter of
form, to sign forms.
The Chairman. Is it a fact, Mr. Brewster, that you spent most of
your time looking after horseracing instead of looking after the
union's business ?
Mr. Brewster. No, sir ; it is not.
The Chairman. All right.
Mr. Kennedy. Can we get this other matter in now ?
The Chairman. Yes.
(Members present at this point: The Chairman, Senators Mundt,
and Gold water.)
1374 IMPROPER ACTIVITIES IN THE LABOR FIELD
TESTIMONY OF CAEMINE S. BELLINO— Eesumed
Mr. Kennedy. I want to ask you, Mr. Bellino, if you have also
made a study of the loans receivable for local 174 ?
Mr. Belling. Yes, sir.
Mr. Kennedy. Can you describe the situation that you found there ?
Mr. Belling. With respect to the loans of 174, we found, for in-
stance, at the end of December 31, 1955, total loans as reported by the
imion to the Treasury Department on form 990 of $30,794.05. How-
ever, from a review of the loan records which they made available,
plus their receipts and disbursements during this period, the loans
should have been at that time $63,615.54. In other words, approxi-
mately $33,000 in loans just disappeared.
Specifically, you might take as an example the loans which were
made to joint council 28 convention fund. $3,000 was loaned by 174
to joint council 28 convention fmid in 1952. At the end of 1952, on
the reports prepared by local 174, they omitted this item as an asset.
It just disappeared.
Likewise, m 1953, $12,000 was loaned to joint council convention
fund and again at the end of the year that amount, plus $3,000 pre-
viously loaned, had disappeared, or $15,000 at that time.
Mr. Kennedy. What do you mean when you say disappeared ?
Mr. Belling. It disappeared in that there is no other record main-
tained to show that local 174 had coming to it from the joint council
convention fund a total of $15,000.
The Chairman. It also reflects no repayments ?
Mr. Belling. No payment of any kind. Similarly, $1,000 was
loaned in 1954. So that the total of $16,000 loaned by local 174 does
not appear on the financial statement issued at the end of December
31, 1954. Likewise, December 31, 1955.
There are several instances of the same nature in connection with
other loans made.
The Chairman. Do you have a list of them ? Have you recapitu-
lated a list of them ?
Mr. Belling. Yes, sir.
The Chairman. Are they reflected on a mimeographed sheet that
you have prepared ?
Mr. Belling. Yes, sir. That is headed "Loans Eeceivable at De-
cember 31, 1955," as per our investigation, and as per the amoimts
shown by Mr. Yerschueren, the bookkeeper for local 174.
The Chairman. That may be made exhibit No. 113.
(The document referred to was marked "Exhibit No. 113," for
reference, and will be found in the appendix on p. 1503.)
Mr. Kennedy. Do you have some other instances there ?
Mr. Belling. Another instance would be the loan of A. J. Greer,
who was an officer of local 174. The records reflect that Greer was
loaned $1,000 in June 1950. No payment was ever made on that loan.
However, in 1953, there was an item of $573.33 shown as a receipt
which came from the joint council legislative fimd, supposedly to be
applied against Greer's loan. However, at the end of the year, they
listed that one still as an open account, and subsequently dropped, in
the year of 1954 or 1955.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1375
Mr. IvENNEDT. They took money from one union and gave it to this
joint council, or local 174, rather, and said that was the payment for
tiie loan of one of the officials, is that right ?
Mr. Belling. That is correct.
Mr. Kennedy. And, actually, it was not money from the official
at all, but it was ]ust money from another teamsters' union?
Mr. Belling. That is correct. I believe he had died in the mean-
time and this payment was made from this other fund.
Senator Goldwater. May I ask a question ?
The Chairman. Senator Goldwater.
Senator Goldwator. On tlie large worksheet, it shows the Clear-
brook Stock Farms at the beginning of 1954, $13,000. Was there any
indication as to how that was cleared up in that year «
Mr. Belling. That was paid by a check from the Western Con-
ference of Teamsters m the amount of sixteen thousand, one-hundred-
and-some-odd dollars. It was a loan that Mr. Brewster obtained from
the Western Conference of Teamsters to pay off this loan to local
Senator Goldwater. Did you ascertain how the statement of the
western conference handled that transaction ?
Mr. Belling. They treated that as a loan to Mr. Brewster.
Senator Goldwater. And still carried it ?
Mr Belling. Yes, sir. It was subsequentlv paid off and it in-
cluded only a balance of $80,000 which had been also loaned to Mr
Brewster at that time.
Senator Goldwater. Was the $3,100 excess for interest «
Mr. Belling. $2,105 was interest, $1,005.07, I think, was miscel-
laneous advances, called miscellaneous advances. There was no other
identification.
Senator Goldwater. How did they handle that one-thousand-odd
dollars m 174 ?
Mr. Belling. They took it as income.
^ ^"^^^.^J^^^'^^^T- ^^^ ^® ^^^^^ ^o™® of tl^ese others put into the record,
Mr. Chairman? '
The Chairman. Indicate which one.
Mr. Belling. This is a summary of the loans receivable by Joint
Council 28, showing the balances at the end of each year from Decem-
ber 31, 1952, 1953, 1954, and 1955. This was prepared from an
examination of the record of joint council 28.
This is one of joint council 28.
The Chairman. It may be made exhibit No. 114.
(The document referred to was marked "Exhibit No. 114," for ref-
erence and will be found in the appendix on p. 1504.)
Mr. Belling. We also have a summary of the loans of the Western
Conference of Teamsters, showing the balances at January 1, 1954
December 31, 1954; December 31, 1955; and December 31, 1956, which
was likewise made from the records made available to us.
Do you want to make that an exhibit. Senator?
The Chairman. It may be made exhibit 115.
(The document referred to was marked "Exhibit No. 115," for ref-
Brence and will be found in the appendix on pp. 1505-1506.)
Senator Mundt. Do you know, Mr. Bellino, who these other people
are who borrowed money ?
89330— 57— pt. 4 18
1376 IMPROPER ACTIVITIES IN THE LABOR FIELD
For example, Mr. William Ehemford, who borrowed $3,400, do you
know who he was ?
Mr. Belling. No, sir; except that I believe he may have been a
union member. Other than that, I do not know.
Senator Mundt. Mr. Brewster, do you know Mr. William T. Rhem-
ford?
Mr. Brewster. Yes, sir; I do.
Senator Mundt. Will you identify him?
Mr. Brewster. Yes. That is covered by a mortgage on his home.
Senator Mundt. I was inquiring about him. What is his job?
Mr. Brewster. John C. Truck Driver.
Senator Mundt. John C. ? Good for him. By golly, he has been
paying it back, too.
Do you know Mr. Charles Johnson, Mr. Bellino ?
Mr.' Belling. I believe there was a Charles Jolinson who was con-
nected with the pinball business in some way.
Possibly Mr. Brewster can explain that.
Senator Mundt. How about Mr. Charles Johnson, do you know
him?
Mr. Brewster. Yes, he is, he has a route of pinballs.
Senator Mundt. In Portland where they are gambling devices or in
Seattle where they use them on Sunday-school picnics ?
Mr. Brewster. No. This is the Sunday-school part.
Senator Mundt. This is in Seattle.
Mr. Kennedy. I think they make about $5 million a year from
them.
Mr. Brewster. I wouldn't guess.
Mr. Kennedy. There is a gambling tax in Seattle, I understand,
and they get about $3 million a year.
Mr. Brewster. You mean the amusement tax. That is what they
call it. . T^ n 1 o
Mr. Kennedy. They are the same kind of machines as m Portland?
Mr. Brewster. I don't know what is in Portland. I haven't been
around Portland much.
Also Chuck Johnson or Charley Johnson has borrowed money from
time to time, and he puts up very good collateral, and so forth, and
he carries a card in 174. He has been an oldtime John C. Truck Driver.
Senator Mundt. Very good. That is what we are looking for.
How about Mr. A. H. Evans, Mr. Bellino, do you know who he is ?
Mr. Belling. I believe Mr. Brewster might be able to shed a little
light on Evans, too.
Senator Mundt. Mr. A. H. Evans?
Mr. Brewster. Yes, sir. Evans is a business agent for a local
union in Washington, and this is a mortgage on his home. He built it.
He was stuck and it came before the regular channels.
Senator Mundt. Does this mean that he has paid it off entirely now,
that it dropped from $2,750 to $750, and then it disappeared ?
Mr. Belling. It was paid off.
Senator Mundt. Mr. Bellino says it was paid off, Mr. Brewster.
Mr. Brewster. Altogether ; yes. _ _
Senator Ggldwator. Mr. Bellino, I have one item on joint coun-
cil 28, Western Eecording, what is that organization?
IR'IPROPER ACTIVITIES IN THE LABOR FIELD 1377
Mr. Belling. I really don't know, except maybe it is an amuse-
ment business, too. Possibly Mr. Brewster may be able to explain
that. ^
Senator Goldwater. What is the Western Eecording, Mr. Brew-
ster?
Mr. Brewster. Western Kecording is strictly what it means. It is
a recordnig organization that we have some stock in, and we use it to
get the recordings of our minutes and et cetera.
Senator Goldwater. Is it sound recording ?
Mr. Brewster. Yes, sound recording. Strictly no amusement re-
cording.
Senator Goldwater. None of this money was used to pay for Mr.
Elkin's recordings, was it ?
Mr. Brewster. No. I don't know who paid for Mr. Elkin's record-
ings, unless it was Ann Thompson, or some of those people.
Mr. Kennedy. May we have these made a part of the record also?
Mr. Belling. We have two statements prepared showing the bal-
ances due to the retirement trust fund No. 1 and retirement trust
fund No. 2, listing the balances at the end of each year for 1954, 1955
and 1956 on one and 1955 and 1956 on the other, which were prepared
from the records made available to us.
The Chairman. They may be made exhibits 116-A and 116-B.
(The documents referred to were marked "Exhibits Nos. 116-A and
116-B" for reference and will be found in the appendix on pp. 1507-
1508.)
Mr. Kennedy. Mr. Brewster, could you explain at all why these
loans that Mr. Bellino was talking about which iust disappeared,
about $30,000 worth of them? '
INIr. Brewster. I don't believe they disappeared. I think they must
have been paid back.
Mv. Kennedy. The records sliow they were not.
Mr. Breavster. I don't recall this. I am going to have to check on
this and have somebody run that down. I don't know why these loans
would be written off, just wiped off. I can't understand it myself.
It IS beyond me.
Mr. Kennedy. You are going to be a busy man back in Seattle, are
you not ?
Mr. Brewster. I am going to be busier than a cat on a tin roof.
Mr. Kennedy. The pinball machines and the contract that the
teamsters signed with tlie pinball operators, there is a provision in
there, is there not, that the union will only service the organization's
machines ?
Mr. Brewster. I don't believe that is so.
Is tliere ? Did you see it ?
Mr. Kennedy. Yes ; at least up until 1956.
Mr. Brewstor. Well, I want to say this : As I said yesterday, the
first time I saw that contract was yesterday. I certainly would not
approve or condone anyone, any organization, signing a contract
with an association only and forcing people into any type of asso-
ciation, I don't care what it is.
Mr. Kennedy. Would you be in favor of allowing people to own
their own machines ?
Mr. Brewster. Owning their own machines ?
1378 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Yes.
Mr. Brewster. I don't know anything about that. That is a city
ordinance. I don't interest myself in it. I am not opposed to people
owning their own machines, if you mean me personally.
Mr. Kennedy. I mean as far as the union is concerned. There
is a provision that the union members cannot service operator-owned
machines, place-owned machines. There is a provision in the contract
that you signed with the associaiton which prevents people from
owning their own machines.
Mr. Brewster. I don't know. That is getting highly teclinical,
Bob.
Mr. Kennedy. No ; it isn't.
Mr. Brewster. I don't know what the restrictions would be. In
other words, you talk about servicing them, and then some of the
other servicing and so forth which would be done by individuals
that are not in the miion, the light repairs and so forth. The only
time they would call a union is when there was something they were
stuck on. I would say no, we wouldn't do that.
Mr. Kennedy. You would not be against
Mr. Brewster. We would be in favor of them servicing them all
the way through if they owned their own machines.
Mr. Kennedy. You mean if they owned their own machines?
Mr. Brewster. Yes.
Mr. Kennedy. You wouldn't oppose them owning their own ma-
chines ?
Mr. Brewster. No.
Mr. Kennedy. Would you look into that when you get back to
Seattle?
Mr. Brewster. Yes ; if I can get around to it.
Mr. Kennedy. It is pretty important to some of the individuals
out there. Would you look into that, too?
Mr. Brewster. I will make an attempt to do it if I can get around
to it.
(The witness conferred with his counsel.)
The Chairman. The Chair will announce that one of the members
of the staff has made a recapitulation of items of expenditures, moneys
used from the various teamsters unions and organizations that have
been involved in these hearings that have either been lost to the miions,
to the dues-paying members, or misappropriated and still unac-
counted for, or of a questionable nature, totaling a gross total of
$70,420.14. There has been prepared for the staff a list of these
items that are now available to ay one on a mimeogi^aphed sheet. The
mimeographed sheet shows a total of $409,309.98. The additional
amount making up the $709,420.14 are : $270,110.16, which has been
testified to here this morning by Mr. Bellino in his evidence — that is
in addition to that which has been recapitulated— plus the $30,000
that was testified to here in loans that disappeared from the records,
where there is no accounting for them.
The Chair makes that observation for those who are present.
For the record, this recapitulation made by the staff will be printed
in the record at this point.
(Recapitulation referred to follows:)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1379
Questionable expenditures of the Western Conference of Teamsters
Bobby Eisen air travel $46.09
Do 55; 22
Richard Cavallero air travel 71. oi
Bobby Eisen air travel 71 01
El Rancho Hotel :
Richard Cavallero 397^ 00
Cash to Mel Eisen ~ 353! 00
Expenses, Terry McNnlty, El Rancho Motel I 60. 00
Terry McNuIty expenses 57 OO
Do ~ 53; 50
Do 29. 50
Breel truck repair, Superior Auto 62. 32
Boxes at race tracks (1954) 1^ 2So! 00
Boxes at race tracks (1955) 1,' 390, 00
Downpayment on Palm Springs home 4' 000. 00
Nicholas Santarelli :
Tropical blue suit $180. 25
Cash from Santarelli to Brewster 219. 75
Suits for Mel Eisen, Terry McNulty, Harry Finks 546. 00
946. 00
^Tr . . 946.00
^\estern conference gift certificates 1954 612.85
Double expenses paid by international and also covered by Western
Conference of Teamsters 1^ 081 00
George Newell (distribution of Breel Stables) 46,' 915^ 00
Loan from Joint Council No. 28 1, lOO. 00
Loan from retirement trust fund No. 1, Western Conference of Team-
sters 10, 000. 00
Public relations fund, Los Angeles 23, OOO. 00
Special fund, local 174 99^999.65
Unemployment relief fund, local 174 6oiooo! 00
Check to Fred Galeno 1,' 225! 00
Do ' 507! 50
Purchase of car for Mary James, Bothell, Wash 3, 115. 00
Differences between Department of Labor report and income tax re-
turns of Frank W. Brewster 56, 195. 76
Fred Galeno (delegate expense) ' 75o! 00
Dave Beck, Jr. (delegate expense) 1 75O. 00
Simon Wampold (delegate expense) 750.00
Sweeney Interior Decorating 6, (502! 27
Quebec Chibougamau stock 40] 550! 00
Purchase of Campbell Soup stock 47,' 100. 00
Olympic Hotel, San Francisco (Maloney) ' 21.20
Olympic Hotel, Seattle (Maloney) "^ 35.86
Hotel Multnomah, Portland (Maloney) 36.41
Olympic Hotel, Seattle ( Maloney) __'_ 27! 40
Do 2S.8Q
Do 44.17
Do .^ 17.32
Do 29. 13
Hotel Multnomah, Portland (Maloney) I 24L50
Hotel Benjamin Franklin (Maloney) 33! 73
Northwest Airlines, Maloney transportation is! 87
United Airlines, Maloney transpoiialion ~ 3l! 35
United Airlines, Maloney transpdilalion 3l! 35
Telephone bills for Maloney at Park Plaza Towers and King Towers. 707! 00
Air travel for Joe McLaughlin 73. 45
Olympic Hotel, San Francisco (or William Langley) 75! 95
Olympic Hotel, Seattle (for William Langley) 39 27
Benjamin Franklin Hotel (for William Langley) I5! 10
Check to William Langley from Western Conference of Teamsters___ 50o! 00
Total 409, 309. 98
1380 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. I am advised by the staff that while some items
in this may be questionable, there may be some proper explanation
for them. Still, there have been items omitted that there might be
questions about. So as of now, and based on the testimony we have,
this appears to be a fairly reasonable and accurate account of funds
this committee has discovered that need accounting for.
Senator Mundt. I wish to point out, Mr. Chairman, that this does
not include the $400,000 that we were discussing the other day.
The Chairman. That does not include the $400,000 loaned to the
truckline and some other items.
Mr. Kennedy. And the loan of Mr. Brewster's that is still outstand-
ing that he was unaware of, of $11,000.
Excuse me, I am sorry, it is in there.
The Chairman. There are some few items, like the $400,000 loan,
for instance. There is a possibility, maybe, that that will be repaid.
We are just trying to arrive at the very best amount to indicate what
is really involved in this inquiry into the transactions of the teamster
unions in the western conference area.
Mr. Brewster, do you wish to make any closing comment, particu-
larly on these amounts which the Chair has referred to?
Mr. Brewster. Only that I thank the committee very much, and I
am a little bit tired and I would like to get West.
The Chairman. We are tired, too. We want to bring this to a
close.
Mr. Brewster. I appreciate the treatment that you have given me.
I think you have been very fine. You haven't abused me in any way.
The Chairman. Thank you, sir.
Just one moment.
You will remain under your present subpena, under recognizance
to return whenever the committee may need you upon giving you or
your counsel reasonable notice.
Mr. Brewster. I will be ready at any time.
The Chairman. I understand you will make available all the rec-
ords which the committee has indicated they are interested in.
Mr. Brewster. I will.
The Chairman. With that understanding, thank you, Mr. Brewster.
You may be excused.
The Chair would like to particularly express the committee's thanks
and appreciation to those who have worked so diligently and faith-
fully long hours of time in helping make possible the disclosures that
have been made, that have been revealed here, during the course of
these hearings : Mr. A. Ray Bandy, manager of tlie General Account-
ing Office in Seattle, Wash. ; Mr. Fred Thompson, John Colman,
Walter Henson, Al Moore, Richard Andrews, and William Dean.
Also of the Seattle General Accounting Office : Mr. H. L. Ryder, of
Los Angeles ; Roy Howard of Los Angeles ; Walter Malone, of Los
Angeles ; Les Poole, of New York City ; Thomas Mulhern, from Los
Angeles. Also Mr. Carmine Bellino and Mr. Pierre Salinger, mem-
bers of the committee staff.
I will say that the public cannot begin, in my opinion, to realize
and appreciate the long hours and the effort that our staff has to
make and does make to bring out these facts that possibly would oth-
erwise never be known and never be disclosed, except for the au-
lAIPEOPER ACTIVITIES IN THE LABOR FIELD 1381
thority that is vested in this committee cand the mandate that it has
undertaken to carry out, and the fine staff that assists it in under-
taknig to do its job.
Thank you.
This series of hearings is conchided.
The question may be asked whether there will be any further hear-
ings m the PortLand area. There may be. We make no statement
at this time as to whether there will be or not. Some other informa-
tion has come m since these hearings started that we have not had time
to check and to process.
But for this series, this hearing is now closed.
(Members present at the taking of the recess : The chainnan Sen-
ators Mundt, and Gold water.)
(TOereupon, at 12: 57 p. m., the committee recessed, subject to the
call of the Chair.) "*
APPENDIX
EXHIBITS
Exhibit No. 66
NORTHWEST AIRLINES, INC. 12
TRANSPORTATrON RtCEIPT
UNIVEBSAl AIR TRAVEL PUkN
OKIGINAi - TO CONTRACTOS
■:5k<PLETE i!5
— — »• m :a m p!»a,-, h
tTnS
^y.Tmmiiniw
fRCKCt
(16)
=^.— ^P,.
^^^^;;/—
ORIGIN A
' TICKET*
(i2^.Ulp/t I ^
-~ ^^_:i;i d i.< ?1H
, —rfm:!*
's.^'tyz^
^dForfr.o A/^. l:;..'':
89330 O— 57— pt. 4 IJ
1383
1384 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 67
or
-S.
;t st
z
o
O
I
O
o <
a. wo
I
^
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hb I
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4 ;
i i
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 67— Continued
1385
131 l»'»
2 ^
» 2 55
i '■"■'■"
.
-' "
t.5 9 4>«8
TSJ YVR SONNELL
MK \\
1 02.4Ve""
86S5
OOA DEN LOICAN
MK \
743.825
1 98/44
: SEA QEQ CROHOER
JL ^0
7 546 14
69.85
: SEA QEQ MILTON
oi ^^
4 1 7,4 06
55B6
Sro LAX tREWSTER
JUL ?0
ia4 52
46D9
SEA DEN lARSETT
JLli
245.426
208.67
( SEA OCN SWEOCY MILTON
JU-tfc
1M68
69
JUL ti>
70
46629.
1 LAX DEN SKYERS
JULtO
2ai 26
1 2654
( SAC CH 1 F INKS
JULtO
2ai 27
25931
i POX TWr PURVIS
JU. 2S
7Ja854
6655
7 SEA LAX IREWSTER
145.691
1 54.97
♦ YVR YQB SCOTT
JUL t\
64a618
28855
« rox or.N PURVIS
JUL^\
5.5 4 2
3.40
« POX DCN PURVIS
M.li
ia227
1 5734
« SEA sro LAX SWEENEY
JUL ?0
2 20.0 07
1 34S7 •
ft SAN UX tREWSTER
JUL 19
7 99.5 6 9
J 3.5 5 B
157J0
5797.16
CASH
« YVR SEA PURVIS
• •T"! Sf« PURVI3
'2 ^ . ilL HAFr
I* SCA DEN MILTON
• SEA LAX WHITSTOrC
I* POX DEN PURVIS
l« DEN SFO HOSHAV
* Ux sro IREWSTER
• TSJ YVR tOfWELL
• YSJ iw ITEHORSE lOWtLL
l«>AN LAX EISEN
* MN UX SWEENEY
I* UX DEN SPCYER
|« SEA LAX IREWSTER
l« SEA YVR NIELSEN
l^iEA QEauiLlQW
UK 6
AUC 6
«UC 9
AUC VS
MJC \t
AUC \)
AUC \t
AUC \t
25,369
59.1 ZZ
5^566
1 15.404
4.743
2 1,8 85
99.9 32
89ai 85
441,442
155^3
54.97
20651
1 4620
1 46200
1 46J0
46j09
48 JO
1 06j65
5522
1628 .
I 2654
1 4550
ISjBI
222JI
.394.48
1386 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 68
CIOH
l« ICTTH «AH«.'
li STATDtMM ORAHMI
16 SEA SF« OmMSTEtN
I* SCA CHI HE(X
IC SCASrO KCK
U ATL OHt WAHM^
fVt \i
35 1.316
47X026
866.872
865.793
mi^ 46<861
5 85
90.9 7
5 732 1'^
1.1 01fl7
1.1 01J07*
1.1 12 7^-^
67B^-'
6 73J0 7
ZZJOO
1,8 49.77
91lTB«TVON it
UNITED AIR LINES, INC
(16)
THANSPOBTATION RFCF'PT
IJNIVfPSAl AIR TtAVM. PIAN «
ORIGINAI-TO CONTRACTOR
Cr^ ¥E^M.* I E PS
jES
*'■"'•■■ ,
UNITED AIR LINES, INC.
TiJANSPORTATiON RECfPT
UNIVFRSAI AiR TRAVEL PLAN
ORIGINAl-TO CONTRACTOR |
MPLET-'RyUTTN^i ■■
uTis 1 CHARGES
„.<, A c;.u»T-
• O ' TO ..•
^ «r. . •> ""_i^
<^^ 5^ ^'^^
«.c..-o«
T.«l
...f I.C->««I
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< " CS« liX.CAbt CMAM'.tS vi> |^< ' «ca
•••x
i :;x::::n.,.t'j_
1 ,.. '
co^T-rc'-o:.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1387
Exhibit Xo. 68 — Continue<i
kom'iESTERM UJNFe:^>JO^: )F Ttim3ri--\{'i
I 2 SEA 3Ea P«A.$CH
16 SEA CHI IRAHMt
I* SEA LAX LINDSAY
I 6 SEA iFo nuo^y
16 SEA SFO LIN03AY
'■''■n.
JL.1 1
4.^A^2h
HAr \9
6^4.333
HAT \"l
7e.24fc
Mr \T
351.531
K»V \1
7t>.2 9c
HA) \\
1 2 a 7 3 'j
f>, \1
.^: \.':5C
ijiia
f'U,
2
Jl<.Y J
I9'i4
3 5 '
4 9
7-26
2-3251
c8C9.;
9C.9-
3.1 4 6.19 1
: 9 J ^ '-,
<I 38.62
^- -^
\i>n'iS.
gr^^o ^-Ai-^
umii 10
«c.
■
'.•";-• -- - ....,.,.
..... ). 6^917
1 6 MSY ATL WAAtfX-^U)
AM \S t
pj*;r?G
NO REFUKO MLtIf:
» 6 FAK-: A.JJJ-jn^erjT NO NA'jt£ HAT ZS 9 ■jt^7 3 1
31 63
16 SCA BOI MASCH
JUhtV 4 3 3.650
10054
16 SEA sro LINDSAY
ml\ 65.790
^.,4 5
1 6 SEA SH) PRASCH
JUN V6 200,790
JIN \ ft 2 0.793
91
2 6 3
1 6 SEA sro PKASCH
4JN Va 200.789
JUN \» 20a782
792
20603
1 6 LAX SEA PRASc*^
JIX \5 17a958
7101
1 6 SEA SA) PRA3>!
JIM \U 2 CO 6 1
C2
iei.9-i
1 6 SEA SFO Pf^ASOH
.tK \U 7 0.626
9C97
1 6 SEA •£« PRAS'>'
JI.N \K 20a621
\ 9.5 8
1 6 SCA SFO »RA3'>'
Ji*. \\ 7 9.5 5 5
9 0.9 7
1 6 SCA IFO PRAIOH
4M\\ 2 0.060
90.97
16 SCA POX LINDSAY
M, ^ 79.152
1 9.5 3
1 6 LAX SEA PRAIOH
^ 1 6 2 5.586
7 9. 1 4 B
20593
i«L_JL 1 65.0 1 1
39 10
3.1 4 6.1*
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1388 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 69
"^;.
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^ V I
-w
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- X
IMPROPER ACTIVITIES IN THE LABOR FIELD 1389
Exhibit; No. 70A
Pa«« _____ of P*«e»
EXPENSE VOUCHER
.^^
WESTgRN CCNf-.?i3<C2 CT TEAM5T!iR5
i:d covered ^- y:?^- ir>
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riana Fare
-1
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Repairs i Parkljig
- -
_^._
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Hotel
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(a^
/cc
/cc
' ?iccy
Usals
/raa
*A'
ir^^
t- ^
i.<^-
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Telephone &
Telegraph
Crganiiatlonal
Expense
Taxi
■
Incidenttds
Meetings
1 ^ -^
1
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i
^T77
T'JTA^
Re:
Signe
Title
d '^/lA.>^^■> .-^^ .-^
t.i^-
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1390 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 70B
EIPEWSE VOUCHER
of
Pages
WESTERN OOfffcJffiNCE CF
• aME '^ : -,« ^ /^^^^
rEHiiST£RS
h^TE PREPARED _
to :^-^
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Rapalre i Paricii^
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ico
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_^;_
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ire
.stenographer
^*i'S!SS?'.pfe
Organltatlonal
Expense
Taxi
Incidentals
Meetings
1
I
1
TOTAL
^rr^
Re:
Signe
Affil
Title
d ^72^>w;> :^
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IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 70C
1391
tJ^^NSE y.l'CHETt
^shi.:- VviPiD
1392 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. TOD
KCEKSE 7CUCHER
of
*rESTER^ OOMr-bflENC£ OF; T£.>riST^RS
^agas
y/^.*>
fERIJD COVERED
^? ;ff'»
y-;i/ y>
IMPROPER ACTIVITIES IN THE LABOR FIELD 1393
Exhibit No. TOE
-I. .....5=^.-2^^ - —
OATi m^-^^Z^^:^^ "^^ _....™^ g
iOOMNU««« Y RAT1$ ^ .. -PWM
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ICL AIR MOTIL
125 Soiitfc C $♦. Tm»H«, Colff.
•Y
.ini"/
Hoom OocuipoHvry
^^'■^Sir^
CHKZ OVT
„ orouxx
^
EL RANCHO MOTEL
1100 El Comifio R«ol Millbra«, Cclif.
Juiio 8-2912
By t^, J^^^^-"-^
■or* pm flCn CWrftB
^--^
GUEST RECEIPT
om-
J.
Ur ^0^
laXJ'
M r ^- 7idA/j^ —-/ z^
pcmcy from r^A^ f^ . V Z_to Vva/ /«^^^^
fc"_ ^ ^^
<y<xoat
/ EL RANCHO MOTEL
1100 El Comino RmI Mitlbr««, C«lif
^ Jyno 1-2912
»• ODt r«n f»r
1394 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. TOE— Continued
^^ . li i M jUi^^
WOODLAND MOia
HKjMWAY 9»-W — 127 MAIN STWIT
K H WESTON CHQNI 2-4681
N9 13587
IMPROPER ACTIVITIES IN THE LABOR FIELD 1395
Exhibit No. 71A
f I
1396 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 71B
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1397
Exhibit No. 71C
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1398 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 71D
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1399
EXHIBIT No. TIE
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89330 O— 57— pt. 4-
1400 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 71F
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1401
Exhibit No. 72A
1402 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit" No. 72B
r*Y TO ?« ototi Of
-1"- AfJD VM-. -.,,: -
1. .: lOIWN M:. FILlti
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1403
Exhibit No. 72C
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1404 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 72D
IMPROPER ACTIVITIES IN THE LABOR FIELD 1405
Exhibit No. 72E
1406 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 72F
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 73
1407
1408 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 74
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MNV9 XHHSHQ
IMPROPER
ACTIVITIES IN THB
: LABOR FIELD
Exiii
BIT No. 75
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1410 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 76
VVeslprii ronfereni-e of Teiim.sti'r!
IMPROPER ACTIVITIES IN THE LABOR FIELD 1411
Exhibit No. 77
May 3, 19 "^6
Western Conference of Teamsters
53 Jotin Street
Se.-ttlc, Washington
Attn: JoJm J, Sweenry, Secretary Treaiiurer
Oentletnen:
The ■etibersidp con» ittee Ims requested ^ddit.on«i infor-
matioii re^ariiiif; y.^vir purchase cf unit .35 i,i the i'^csert
Dr^cr.ir Inc.,
I <uu sure you cun und«>ratand, in a develofipent such nn the
Desert Draefiar Inc., all apartment* must be used for r^^rsooal
use only, Tlic cotflnitte* h^s requested that you «end ua a letter
confirming t'da,
A jronpt reply is ncce««&ry to complote the proceaslnc of yowr
applicotJon, U; wi r(>c«ipt of t: is letter we wiii forward to
you all plans and further instructions to cowpiete tliis puPchAse,
Tli.'nk you in adv. nee f*r your cooperation in t iia aatter,
Ven,' truly yours,
tick" :'Kj>hKT lilllRlAJv INC.
Starr Brown
Sales Director
sn:dp
1412 IMPROPER ACTIVITIES IN THE LABOR FIELD
J:xhibit No. 78
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 79
1413
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1414 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 80
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Exhibit No. 81
1415
89330 O— 57— pt. 4-
1416 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 82A
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1417
Exhibit No. 82B
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1418 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 82C
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Exhibit No. 82D
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1420 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 82E
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1421
EXHIBIT No. 82F
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1422 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 82G
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1423
Exhibit No. 82H
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1424 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 83A
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1425
Exhibit No. 83B
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1426 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 84A
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 84B
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1428 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 84C
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1429
Exhibit No. 84D
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1430 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 84E
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 86A
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1432 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 85B
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1433
Exhibit No. 86
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1434 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 87
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 88
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1436 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 89A
, ^^ _ HBOBTBATION
\ CITY eJ^a//Al
STATE
u^szy ^SBC^^
MAKE
OF CAR
STATF ^/'>v
numbl:h
OF PKFSONS /
PATMOfT REQUOTtD
NOTKx TO aonn
TMi« pmO*%Wf<l l« paiVATlLV OWNtO AND THt M*N*aiMtNT HfKIIVC* ''Kit
■ lOHT TO l>Cru*< MOVICI TO OMTONt •NO WILL NOT It ■.B»ON»i»n roo
ACCIOtNTS O* IMJUHT TO •Ut*T* O* 'O* LOS* Of MONCT JtWILOT OH
^•/
DATE W yjQy ^ Q 195?
RATE! //^
DATE OUT
DATS
c*^/:y.
SUN /^ >5 JJ^
WED
THUR
FRI
SAT
/y
3;^-
fr
TOTAL
DAySL__
AkTT
PAID %.
(^-
MI««Ttl.r OWMIe »NO TMC MSIULAIHIMT aiviMyf*
■i«»tT TO acrwM Mavtci to amtomi. amo will wot M •i»Mw«»>ott ro«
«ccioCMTs eo Huwrr to •virr* e* ro» tow o* -o-tT >f»ct.«* o«
TOTAl. AVfT.
DAYS t- PAID l_
IMPROPER ACTIVITIES IN THE LABOR FIELD 1437
EXHIBIT No. 89A — Continued
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1438 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 89B
M
REGISTRATION ^W f^'
\ STREET ^j^^^ /(^^i^*.^
\ CiTV^-^i^^e-^^^ ^
i STATE ^^^;;^4^ .
STATE Ca^^
CAR
LICENSE ^^^^^/C
MAKE
OF CAR
i.i^
NUMBER - ^
OF PERSONS /^
J^9''r^'
ADVANCE PAYMENT REQUESTED
NOTICE TO GUESTS
ROOM NO
;?/
DATE IN
'" rn 1 ' ' < 1
RATE $
^^
DATE OUT
DAYS OCCUPIED
SUN.
MON.
TUES.
WED.
THUR.
FRI
>*1
?-3
2f
ii.
AMT.
_PAID $_
REGISTRATION
! ROOM NO ,' iL
NAME
STREET
CITY
STATE
CAR
LICENSE
MAKE
OF CAR
cr~
NUMBER
OF PERSONS
ADVANCE PAYMENT REQUESTED
NOTICE TO GUESTS
DATE IN
RATt %
SUN.
MON
1
; TUES.
[ AED
IHUR,
DAYS
OCCl
Ii
1^
iPIED
n
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14
r1
7t
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'i
; SAT
^
^
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^
ii TOTAL AMT.
, DAYS PAID \
IMPROPER ACTIVITIES IN THE LABOR FIELD 1439
Exhibit No. 89B — Continued
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1440 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 89C
STREET ^^^^^2::.,^.^.^^^ <^2S^^
(2/^
CAR
LICENSE
MAKE
OF CAR
STATE
<^
NUA/BER /
OF PER S ONS /
j^f^rf/
AOVANCt PAYMENT REQUESTED
NOTICE TO GUESTS
DAYS OCCUPrEO
a it
Hi
4.
akx
2^_
3t
^ mm
iff
^\JL
REGISTRATION
NAMfc
STREET
CiTY
CAR
LICENSE
MAKE
OF CAR
/f7^/d /€ c/- ^> i/^ //('a ^ /^'\
Cjy persons /
STATE
NUMBER
ADVANCE PAYMENT REQUESTED
NOTICE TO GUESTS
DAYS Of. UP'ED
/v '/^ ^
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 89C — Continued
1441
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1442 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 89D
REGISTRATION C A--
MILLBRAE, CALIFORNIA
NAME
SEf
lYS OCCUPIED
M^l^lL^^ ^^^ A STA TE
MAKE
OF CAR
1^^^^
i^
NUMBER
OF PERSONS ^
PIRM REPRtSfNTING
ADVANCE PAYMENT REQUESTED
NotK. to G»
NV \VM,
JWtt prop«ftT ii pfiv»t«ly owna^ oiwi »!»« !
m«n«g«mcnt rtMrvm tk« rif ht to ratuM
Mrvic* to oMyona, and will not b« rc-
•pennbl* f«r acci^ntt or iniury to
fHMN or for lou •( moiMy, i«walry or ij
yaliMblM of any kiit4. \
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1443
Exhibit No. 90
AOBEiMENT
TI'TJ \Zf2-ri:n, mr «nd ent»r«d Intn tr.ia l»t day of r»y 1952, by 4nd between
/UfSeygtr ASSf-TATTV :F TtAS^'^TTCV , hereinafter called the On-loj-T
»nri -he ffHCLL3 .:£ ANT) fCT.if!. SlL.^'!'?'/ !)! ^'^5 and "SILKST EN' 3 LOCaL UWION HP. 353,
K-r*-in«ft<.r call-'! t^-* ;t.-. n,..
MiTN-Es^r::^:
1. The rner-KPs of ♦..•!? Ass-^olatinn will be cnrnposed ^f i nd Ivldiials, partner-
-jart-.erships or corporstior.s en^
t.er.t devices in tr.c City of E«atl
nes, ?ri»r.ea <nd ;i^£ers, i:.! .. '
Cltv.
the owning and o-eratlnc of
,• ;:'ovm ar HnbaH or Marble
_r«7h8 wV'rh are duly licensed by
t'. The Association a rece r- reco^ni/e the Ur.ion as the sole collective
hrarcainiiiC ajenoy for e7[f\"i'ees rf amuserert devices in the City of Seattle and
f - !'nion agrees to recncru- the Association solely in enterinj; into contrdctual
r-jlat-.o-" -If, the »-.plo;-er-r-.enfcors of the .i.ssor Jati on.
't is H_r-»d -Jat th" !'n:o- wl ! 1 n^t contract with an;/ -^ther Qnployer or
Assooiat'.or :'or any less favruhi' waces or conditions than those contained in
s»iJ r.ss~-iaf.or. contract.
3. .-.'il nenbers o! this rtssoc'.dtion ■a->i'- re.uire the services of one or i-ore
e-;,loyee a^ree to •mrloy only ■ e-ibers in go-'i standing v.ith l.oral imion Ho. JSJ;
or »n the event tr.ere :« no satisfacton.' entiloyee avai'.aMe at the TJnion, the
Association roepier ray ectloy a non-'jri.^-i en-loyeej ^rovidln; said etrrloyee rtal'es
'.mediate ap; lici.' j ^-i for ner,>rshir ► • Vocal : nion Vo. •^.,3. h* ray, how^rer,
worV for a t' irty (>'"l 1*y reri~i »■*!:«• 'r.s ap;lira'!on 1 <! b-.inc considered.
4. ^'o ^:unday work •.riU he penr-itted ir.cj no split shift shall be -vorVed in
ar_ dn;- at straight time.
The work v.-eeif shall coi.sist o: five coi:s?cuti ve -lays. The base pay shall be
one dollar and eighty five cents ($1.86) ^-er nour with all nrv-rtine in excess of
e.jht (8) hours -cr d*y at the rate of tl:,e and one-ha',f or Tv»o dollars and serenty-
sr-r»n and "ne h"ilf cer.ts (ii.?"? ) p^r boor, hiit under r.o circ.irstances sVall the
-* of any "-.ployee '.t.o hAS worked forty (40) hcurs in any weeV oe less thai, the
ra, wh;c- • e :b r.ow receiving as of tie date of this contract. Then an enploye
is Cive'-. either Saturday or ."on''Ry as his day off (beside Sunday) that day will
contin-je fo i-e his day off and shall not ^e changed without ^o-jent of the employee
and the ur.ion.
,\1" won ■-<.'for-»»d on the sirth day shsl", be raid for at the rate of time and
one half.
5. The nininir rate of r»iy for rec'.:lar enployeoe shall be Seventy four (J74.0O)
dollars per week; provided that inexperienced men nay be employed under this follow-
iri£ wai,e .icale:
First ninety days )62.10
Second ninety d»y8.» . . .^7.27
Thereafter, the rec'Jlar scale of seventy four (J74.00) dolUrs per week shall be
jsid. All employees s-rvicinc irachines on location srall be under the above
scale, VI I., 374'. O") per week.
6. The ?>.plo;'er apr-os to provide vehicles for the u«« of erployees cming
under this cont'act for the r^rpose of trantactln;^ the Hlr.ployer's bu8in»ss, and
will pay for all expenses including Insurance; provided, however, that nhere the
Einployer elects to have the enployee operate his o't, vehicle, he, the employee,
•hall be 'aid the sur, of Twenty (J20.00) dollars ->er week or seven cents (7/)
per mile, whichever Is the greater, to cover the expeitse of operating said vehicle.
7. The Union agrees to expel any nember for Just and •ufflclent cause, wtiep
proof of the sane is submitted to the Trial Board of the atilon, and passed upon
by such Trial Board, according to the By-Laws of t!:e Union.
1444 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 90— Continued
All tmiltiyr-ea who hive ^r«n In <nr ' '. ojr-.rnt six mnnths or njore shall i.iT« the
3r;il'»;-«r two (2) week;j niti-c tmtore Iravinf his enrloy, "he .->-.r:oy»r is also to
;^lve Kll drlver-saleaiiiBn two (2^ weeks notice previous to their dlsmer^e, but
th J shall not ap^ly in cases of discharge dje to drj^Ver.ness or cishonesty.
8. All Union employees, 'ilter one (1) year's s'-'-vlce, s'-all receive at least
one (1) -week's vac^i-n- -irid tf-T iwo ^i) years' continuous s-rvire, t*' (I) wee>s'
VBCHtior v,-ith full :a--.
-. "he loilowin_ '." s s' til L» or3-.1-r.-J • Ij ,_ s ■ itr v}t deJuctlon 1 r. ; *y
-■ • "SO .'.,',; ■, s.fii; - ■•- t-^ r.'. r>r o-iu > t.--; .•(.-.:j,r_, 1, •-> ruory cZ,
'H , •'.'[.' 4, •-h--r n , : ., -jiv.',:. r-.i-ras 'ird all unlays. All work over
• ■•-•/-•. -i ! ■' • , ■ ' : '., W-*. 5'a'.l '^- H.I 1 or It the rate of time and
(feet for
11. -or.ner
r.'>t wages ^ the
loyee who has »
a^ ei;( t dor.ar
^e terr. of this
12. It is
n th* operatlor;
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r
.-^n. , .JSZ.
' ; ■ : "i ' j
; - .' r 'or e»'
-h
- -^.-,. .:. -. >
■::.r., - -nt> .'ur'
inC
i-r-at.nn and
tt.e
fn;
o:: ,U1 CO -erate
' licensed in
the
Ci'
:y -f S-attle.
■en the jarti.., ;
not
rrovided for li
1
;o the true ; •
-.ter]
r,--tatior, nf this
:tee nf trr--
( 3 ■
: -r -(irhitrition;
nscn.-i i*. »<-.-.,
-rj.:
a 1
; *" . r -. , a i i 3 -
or strikes. Th«
14. Any employee wt.r, vr,. ur^tar. "y ,i.ts his »nplo;-->e:t ar^d aci-efts employ-
any
■t be --miittei to
6o!irit an%- location wh.erein >..« f-rrer ..-;liyr is op.riti-^, for a period of
SIX (f ) inonths. It is utually 11'"'*"''' *''■''* ^'^•'' "*" E'"';1''/t sr.all fjurantee
erFlo;-ent to said employee for the said per-, oi' of six (R ) -ont?iS.
15. asployeas ahal! service only es,ui;r,ent ov.-nei: ly their &)plor'»r and shall
not service location oi.-ried equipment.
16. T'^is Ajroe-cnt shall ^n into effect : n, 1, l&i^, and continue in full
force and effect to "ovember 1, 1954. It is further ai^reed and understood tnat on
vovenber 1, 1952, th:s A(;reen.ent shall autopatically be renewed for one (1) year
frnr such date and thereafter upon each annlv-rjary of the tald date, without any
furt.'.er act of either party hereto; i^rovided t.-jit either nay tenulnate this
A^reaaent October 31, 19!;2, or on any anniversary of said date hy fivlnj sixty (60)
days previous notice in writing. In the event a new contract is negotiated »-lch
ombodiee chances In wages or hours of enploynent, the ne-w wage scale shall be
eflectlve and retroactive to the date of "over.ber let of the yar when aald oao-
tract is negotiated.
IS inZ"Z~1 V.t:-C? the p/arties her -o r.uve hereunto set their hand* and seal*
th' d..te arii year ;irst above written.
AK.,«.« ASSocuTio, or «i«:r.ro. "SHV^, ^^^'^^ T. Zr'
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 91A
1445
i« U4 are nwrrm
10 »r» rm .'.
U rv« H* MILTON.
i< Sft iro tKrvTEii
t« aro KMo *r«*Trii
35 If 4 |. MtMH
>■ OCA C« toivrLL
It 9p« ara piuacH
tS IF I eJC PRiMH
ts tf I ALmmiscH
u ara icI ■■ttti
t t 4,276
20 5,62 7
1 0,4 9 4
77<662
66,063
1 8 1.545
4 9 9,09 1
6 6.0 7 9
66,0 8 1
90 1,886
132
564,7b5
T1 5
1 8£ I
85 7
a7oi
9 2,1 8
1J6
2 72 8
58
2 92 6
1 1 0.6 5
3IJ5
3 6.1 4
2 92 6
1 33 5
3.3
31 2.4 3
43 1
4o^.
^tsFkkHL,
uHtreo Am lines, inc.
(16)
ORIGINAl-TO CONTRACTOR
CARDHOCOCR I
w Q int a w M
-i
|/>.
1-/^^
.-.fiL
±±i
CMABGES
2;^
rxzif
I ON HOLOCA or OMK 1
1446 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 91B
9^ "
UNITED AIR LINES, INC,
(16)
OWGINAL-TO CONTRACTOR
MIS: ' '
X 7^^ '^ r'^y^^^
TiCK^r
..MPl f
, RO..',NO
;::•.
""".;:,;/"
■ . . ,„,,■
. .
• „
" ^■■"_
^L..-t.
>-i^
..i--^
:.' ^- -
.....
(•2^fc f-c -■- '\L.i^-
.4^
J^-.
^-
.^
l.cr^.
r.. , .oi rM«R
uts 1 »^ I '••
1 _
];'■"]:,:_.„ J" .
.::.-."',.;:.
I < SCA LAX PRASOH
I 4 YXO YVK tomELL
I* YVR YXD iOOWaL
I 6 SEA Mi IHUkSON
I 6 YVR SFO HJOWELL
16 STATE fW(M LINOSAY
I 6 SEA SFO PRASOM
I -
i'N 22
ft.;
JUN 26
25
r
zUOJ-
1 31.353
469.089
1 21.639
b 0. 4 7 1
4 1 3.C4 4
: 1.04.:
154 97
-.OS
7S,0
1 7.39
9 7.fto
"■2-:
1 8 1.94
t^^
. <75202
^;3
.<•?
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 92A
1447
■ '*M:;h
y-.^'^d
'^^
89330 O — 57— pt.
1448 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 92B
<^y^ if
(■^ ac^c-**-^
%
%l
o; -^1
1/5 CN
, * ' ^
i
^ ^ :i r
^ I
^ - 1 1
?
•5 ..ii
■" i*
i' i I C
J H ^ ^
/ It
^'-'•H
H
1
'■it
Mji
'i'-r^^
-m
m'^
§ ^
■ >-
*?.
t ;■» '
^
" <
"^ .fi
<
^ '.s:
|l e
■.'• 1 .
Iff
\' ■
ISs
i^
1 j
II
■f:
^1
1
z ^
>- fj
s
'"
a. J
♦
Aith ay
.N»'
BOR FIELD 1449
1450
IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 93 — Continued
3 B
^l 8
IMPROPER ACTIVITIES IN THE LABOR FIELD 1451
Exhibit No. 94 A
riMNT LEE WALtCN
Loj Anqel.$ 27. Coli'
WEfcste' '■'OS
S T A T E k S N T Cl -r , -
jweei.y Job
1 Imported crystal Ghan-Uler | 174, Ou
( Dining room )
1 Imnorted orystal fixture 76.00
( Sntry Eall )
252.00
Lesa 25$ diao 65.0 J
189.00
1 Voven casement to clo8'9 off
workln.: area 150.00
1 4 panel aorean 120" to hide
furnsoe and boater 155,00
2 pr ourtiing for lower bath
and work 9r«a 25.00
4yc).00
packing k Shipping chga 15.00
514.00
Attached Qlbaon Carpet Go statement may
bo paid direct or inoluded with above.
>
.^
1452 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 94B
%
v>:Nv.,Xi
^sV^^o^to' -
Mri4.
Mil
PI
HI
3
^'b^
<r^
IMPROPER ACTIVITIES IN THE LABOR FIELD 1453
Exhibit No. 95A
1.
DlMNT LCC WALTCN
STATBMEUT
4«IS Lot Nih Boul«v«rd
Loi Afl9«lM 27, Calif.
WEb$t»r 17018
OLympia 8579
11/1/54
Sweony Job
OARPETINO
Oarpoting >■ quoted «/40ob pad
Credit 178 yds @ 1.00 lesa 20)f
$ 2480.06
132.40
2356.66
180 yds Oushionalre Poaa rubber
padding & 2.50 less 15^ 368.50
9 sq yds Penoord €> 10.96 less 20% 78.84
(This additional oarpetlng was — — —
required! for Recreation rooii)
I 2816.00
1454 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 95B
DIMNy LEE WALTON
STATBMBIT
4«I5 Lot F*ni Boul«yard
Lm An9«lM 27. Calif.
WEb«+»f I 7018
OLympia 8579
11/1/64
Mr. F. W. Brewator
55? Denny yifay
Seattla 9, Washington
REOAPITOLATICH
Page
1. Oarpetlng
2, Living room & Dining poou
3* Maator b«drooB k Boy'i roon
4. Ouaat roon & Kitchen
5* Master bath k Raoreation x*oob
5. Lining for ant ire Job
5* Paoking k Shipping ohargas
paid on ao count loA/54
Balance
N •Ol^^i\'^^J.» ^
'-V.
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 95C
1455
* LtC WALTON
8.
STATEMEMT
4^15 Lot Fdiz Boulevard
Lo« Angeles 27. Calif.
WEbster 1-7018
OLympia 8579
11/1/54
3v«eny Job
:VINO ROOM
1 rroteoto otaement 50 yds e; 1.60
L'^bor 17 w naohino nade ^ S»78
1 Fortlsan oaaement trl fullness
hand made 59 yds @ 3*00
Labor 20 w hand nade ^ 4.75
1 pr lined drapes & "valanoea 4 w
l-?7» 24 yds tr 5.00
Labor drapes 4w t 6.00
Labor 27'w/taok atrip t 5.50
I 75.00
63.75
177.00
05.00
120.00
24.00
94.50
DIN Hi ROOM
61 1/4 Hancl blocked satin panels for
drapea and valances t 7.95
Labor 13w t 6.00
Labor 20' ahirred val ^ 3.00
466.94
78.00
60.00
1274.19
1456 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 95D
8.
DIHNT LreWALTCN
STATIMEIT
4«tS Lot F«lii Boul«y«rd
lot AJ^q^\^^ 27. Calif
WEbt+«f I 7018
OLympla 8S79
11/1/54
Sveony Job
MASTER BSDROOM
45 yds fabric for drapes, Talanoes
and bad sklrta © 7.95 | 567.76
13 1/2 yda aatln for bedspreads ,
.ahans and pillofva @ 4.60 60.75
Labor 10 w/drapes <e 6,00 60.00
Labor 12t* ▼alanoo @ 2.76 54.57
Labor 2 sheet spreads @ 57.50 w/shaas 75,00
Labor 2 M4spkir«l • 18.60 57.00
Labor 2 Deoron filled pillows (t 5,00 10.00
Labor 15 yds quilting & 4.50 67,50
boy's room
2li yds drape fabric S 5,00(2pr drapes) 107.50
Labor 8w/ lined drapes t 6,00 48.00
16 1/5 yds tweed bedspreads, ahaas
8nd oomloea « 4.50 75.60
Labor 2 lined spreads « 50.00 60.00
4 Pillows 5 yds fe 2.76 8.26
Labor 4 pillows 6' 5,75 u/filled 16.00
2/5 yds fabrlo deak ohalr seat e; 6.60 4.20
iai8«»
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 95E
1457
HUNT ICC H'ytLTCN
5.
A T E V ?: N T
♦615 Los f-*!'; Boulevard
Los Angelei 27 Cal.f
WEbs»or I 7018
OLymoia 8579
11/1/54
Sweeny Job
MASTER PATH
1 Dutch curtain, glass bouole
4 panels 4^ yds t 3.00
Labor 4 panels t 2.50
13.75
10.00
REGREATICN ROOM
1 Hand woven oaaeirent natoh stick
inol make up for traverse and lined
115.00
LIM5
Lining usei on entire Job for drapei
valances, bedspreads, lust ruffles,
rlllowaeto
61 Yds Tempo resisto fe 1.95
115 yds regular drap/llning ►t 1.00
118.95
115.00
PAOKDJO k SHIPPING
Packing qnJ 3blpping
63.15
All work custoir nade oasementa, valanoes,
drapoa. Triple fullneM ua«d throughout.
1458 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 95F
I IHS> t I I H<\l T€N
T A T H W E N T
4.
46 IS Los he\ii Bou'evard
Los Angeles ?7 Ca'if
WEbsfer . 70 8
O.yr-.p.a 8S79
11/1/54
oweeny Job
. : f cr Jrape3 , lodsk
Irt
I : ..,'V3 2.50
i
50. Gu
-V" ^rap^a ^ 6.00
36.00
*:*.rla for lolatsr and
;-.'.] 3.75
28.12
- Ij yds quilting . 4.50
45.00
vu r-gp spread
5f.60
T rn bclat-.r
20.00
;■ ■.. : plllowa *i 4.00
fc.OO
?i pB.'iyis oaf© ourtalna &
r gla33 doer 12yd8 e 2.50
.•:..c- fcper.-^.^l <: 3.50
^v'tor boi.r "^lagj fcr ^'
-Privv-re for Kltaher., 6 lot brass
r ':.,'? l.eo
1,:' ^" Lrae'i tubing it .30
■1 p' icckets t .50
30.00
28.00
4.00
7.50
3.60
2.00
299.7?
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 95G
1459
> LtC WALTOI
CONFIRMATION
F. .V. Brewster
Denny Way
ttlo, Washington
V2e/54
i:iG
(Mr. h kra. John Sweeny Jet.)
Oarpetlng as seleoted Oullatan Ooro-
nation for living rooic, entry hall,
oae boJroom, psaa hall, rear hall
IDO 2/5 yd* e^ 18.95 | 1907.62
428.52
Oarpetlng as aeleoted Mogee DoSialn
for master bedroom
P?. 2/3 yds .- 18.95
Carpeting as seleoted Mogse PenvoM
for rumpus rooa, stairs, stops etc
54 4/9 yds , 10.95
176 yds of {adlng <• 1,00
Less 2O5I discount
stimate fc oasenent materials eto
Shipping c'r ^rpes have not been included in
the above t^ioe, but will be billed at a /
later date, and should run approximately {M/^
420.00 f ^^yCffJ
Oontaote i Iv. Wieland, of the Olbacn O-arpet ^ -^.J"*!
Oo of Seat'"'©. Superrised hia measuring the ^"5
entire Job, and be quoted a prioe for sewing
and laying complete for $390.57, whloh in-
cludes Stittt- Sales tax.
596.18
176.00
3111.52
622. 2>;
$
2489.06
165C.0D
t
4039.06
1460 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 95H
SUNGLO VENETIAN BLIND MFG.
DRAPERIES
1320 Dearborn S4.
She<iM • ComicM • Trav«rM Rods
SEAHLE 44. WASH.
fUmm» «fOt
^1/k^
S^. ^. i/Jc jcc;^^^
OU^^^yf^ HfP^ JL^ ^^SiHC^ f^ glx.
~SM COD CHARGK O^. ACCr Mc»t Hn o P*10 Out
Df»C*«IPTiON
ih***.
??
£4r % * » » >* »^'
^6 oo
2^ Y^^j^t*^ ^^irvu^i^
3y Av- M »J^^^
I! JLf l O O
t^r>
1 ^/?o
yX^' ^t^u.^^
^^m^
• il
ii 1
1 • i
'
ir
i
TAX
il :
iqsSS
TOTAL I
ll .
Alt c.jims a.'. J rsiurrcd ': c:::-- Mul-T oe accompanied by this bi
No. 10953
Rpc d by.
0«kt*n4 *, UifwiiM
IMPROPER ACTIVITIES IN THE LABOR FIELD 1461
Exhibit No. 96A
1 ^.
- * J
• -: j
"^
*? ;
li
■ 'i
,
' s ^
K
1
1
i
1
'- * 1 '"
-
lU
i
f
1462 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 96B
IMPROPER ACTIVITIES IN THE LABOR FIELD 1463
Exhibit No. 97
/
''';r HRST N».TT«»L eAM«( 'Jf P0RTU1L J
'4-70 S'»t- -4 r^r-ison dwwJi 24-}l
fT^i
!5
■ I
. ?_ I
'• • i «>
1464 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 98
'• ' 'r l-r Of
tiAKK'i Ali'LE. ISC,
1 yi" I^-G
c >
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 99A
1465
1466 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 99B
lo
^
d'
^ fi-?^
'9t.l*f f.
i
^ ■-.
' -^^
12 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 100— Continued
STATEMf NT
Standard 5\orVire
55? Ctnny lay
Seattle 9, lash.
r ATt
' to. 'C
C^
ARGES 1 CREDITS j BALANCE
BALANCE
i 32485/
2.40
FORWARL*' T r^r, ^^
i;>4
' ' "
\ 32506^,
.
3j66
*4 38667^
<^
1^7
4 32557^
^-
2^4
i 3ff50S/
♦
3.78
52594^
32592-
A-
2^0
-*•
3.66
4 32424-^
_
4^9
-j 32495'
•
3J25
1,03432
4 54
> 3a625-
4.65
1 32682
-
3.22
' 32587-
.^
4J5
5 54
t 3a5r3-
327P6/
. 3aS03-
4.88
434
538
1,051.74
^ 32833'
41 '
4^7
^\ 99848
4
22.80
1,08735
5 54
32765-^
2.78
327S4-/
4.80
32731^
3.41
32754-
3.83
32748/
.
3.65
(
32837 V'
♦
4.85
N.TC.SH
NO t COLIN-
■ OCO OK »l.L P»»T
STANDARD SERVICE TIRE CO., INC.
IMPROPER ACTIVITIES IN THE
LABOR FIELD 14
EXHIBIT No. 100— Continued
STATCMtNT
Standard Se^^^^^^
■PI flH- ^A"^'^^ AVENUE AND OCNNY WAY
OCT :u 13
MUrua! 6300 ^^^ '- wasmimgtoh
JI*aUn Canf«i«ne« TtwsUra
552 Dinnyllij^
S«tttl« 9, iMh.
DATE
Ml* »rua *No "•'L WITH MMiTi.NCi »i«'tt«o
f
FOLIO
CHAWGES
CttCOlTS
•ALANCE
•ALANCl
32702*^/
634
^ 3.82
2.86
rowwAWO^
laod.'
1412
*IWr7^
3.88
2J24
-
90854-
-* 4J.8
U31.
QCf 854
32889*^
* 335
»
33009^
+ 232
t 1
^ 32948/
«- -4j61
33078-
*- 4.78
»i
32871-^
* 3J3
33132^
^ 3.62
^
32896^^
^' 3.66
1
32950-^
-•^ ja
331 01-
*- ♦j64
4
-"
39880-
« a8w48
,
•
99861-
^49^4
1M2,
OCT 11 M
33271
2J9
33269/
2^4
Kf 12 54
33835'
33152/
33222^
* 3.68
14.98
1236
i;250.
•
33285/
6J.8
_1£845
Tint* N«T C»*M —
NO DISCOUNT
J[L
•kk •ICL* OVt »N0 r
«YA»Lt lOTM or MONTH
LAST AMOUNT
1% f«a MOMTH CH**
MO ON ALL »*aT out ACCOUNT*
STANDARD SCRVICE TIRE CO.. INC
III TMIS COLUW
It •ALANCI Ml
JO IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 100— Continued
STATEIMCNT
Standard Service
fAIRVIlNV AVtNUt AND 0£NNY WAY
StATTLt I 'AASHINGTON
.'e8t«m Conference Teamsters
552 ^nny ay
Teatt]© 9, .'ash.
Dt^ri
r-^ O
CN»H-.f S
( i>tn--rs j BALANCr
B54
33516'
3.a9
fopiro- 1.613.96
33732-
3.30
33726.
4.61
1.625.76
9 54
33863^
3.68
33831^^
4.83
1 1.63 4J27
954 \
33748-
3.06 !
1.637.33
54
337^^5^
9.91 '
33783-
- 3.4'S !
33763^
3.35 '
33791^
3.90
1 Si
33627^
3.08
1.661.02
33953
33855-
34023
33950
33907
33913
34176
33967
33994
34131-
33957^
6.14
4.68
3.72
3.21
4.17
<l.64
13.41
6.95
3.03
3.10
5.32
1,682.94
lii7' rt 3i V ft
STAN6aRD service tire CO, INC.
<> ■.L*MCI out
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 100 — Continued
1469
^n n Ti»^ ^^C« Inc.
fA'UVlEW AVtNUt AND OfNM> WAY
'!'".' WASHINGTON
estem C.oni\re.nc9 Toamsters
ittie 0, asn.
oL. «:8 -ja
344l«^
'^n<^
343*2
3.31
34499
3.47
34360.
5.38
OCI ^9 54
71982
11.59
ttI29 54
34666
2.06
34589-
^.^1
54595
MS
34662-
' ^4
34679
4 5,
34379-
34375
■;
34678
4.. .
XT i^54
50126
:.oi
*- 1,945.00
1,960J21
1,97 1.8(
M7
2,004.0(
2,007.6V
STANDARD SERVICf TitE CO INC
468 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 100— Continued
STATEMENT
andard Sc^^^^^'
ice
MUtudi 6j00
FAIKVIfV. AVENU£ AND DfNNY WA1
StATTLt 1, WASHINGTON
A 1 1954
12 54
r 13 54
Ik.
■.ifestem Conference Te^ maters
552 >r.ny ay
:eatt\e '^ , .'.'ash.
:"---^o J.
6.71
..^AARO*- 1 OAL Lf
yiaBQ^
'
33159-
- 2.66
33292
4.22
33277 -
' 5.56
3S2I5
10.«7
59669
- 2a0o
1»335j69
55S«3
•as
33lil-^
6^8
33387-
7.31
33412-
' 9.53
33186
5.14
5987'
165.00
1,535J3
y
6.45
6.80
1,541.48
2.70
1,550.98
4.40
3.15
3.37
439
*■
' 3.00
-. '. rt
1.89
ijs ..
4J.2
- 4^1
•o^--
» ,4 ••L*»Ci out
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 100
MUi
STATt VENT
I ; S i A A .(Ntt AND Of'
SfATTLf i WASHINGTON
■'eatem Conference T<
552 ")enny *a,y
ea'Ale 9, .'^sh.
5te-8
f — ' •
.1 • . 3 u . I s - o , « •
PA-f
roLiO
BALANCC 1
1
33903-
7.99
.o«^*«.-^ 1,722.90
OCI 22 54
33966^
6.78
'
OCT 25 54
?ifS?
'm
1,792.67
34322
9.54
34325^
5.01
341 49
3.33
1
34051-
4.36
1
34183
1.61
1
34(98
4.38
OCI 25 54
OCI 25 54
UCl 25 54
343^^
50106
70557
5.75)
9.01
^2.32
1,831.29
1,841.29
1,850.30
70391
2.83
1.915.45
jCI 26 54
34079
34313
34340-
34249^
3J28
3.31
4.70
4.35
34204-
3.90
1.934-99
XT 27 54
54398/
2.49
i ' ' ' ^-^
XI 27 54
50130
4 6
Oi:t 28 f 4
-, , ..
ST<
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 101
1473
Jm ^ I I,
y '^ '
•fiO IV
^ ^59 [
^';
;; -^z. D
i ,r.-
Hi
zggj
1474 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 102
New Car
Purchase
Order
HARRY APPLE, INC.
4627 Hollywood Boulcrard : NOrm.mdy 3 120!
Los Angeles 27, Californu
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 103
1475
ii
fgr-r^-J^^Jjt'
1476 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 104
^^fiu^*^
rat ■ Ma*«i-fiist (MMMfta*
A. A. TREM,^«
«W«« C«U*rrt. WMIKItMrtXMl
■i I I.
[.. I.''
:r
IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 105
1477
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1478 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 106
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 108
1479
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1480 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 109
FRAITK BREV/STER
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DA-
"A I.' '
: ".::i-;. .ax returns
Tr.-.-.a
.-
TE.J 3
. ■ :'.:;
f Lat'-^r
Per Income
Tax Returns
$ 1,233.00
575. i+o
:• 2., 250. 15
1,196.6c
1953
'J, oro.cn
10,983.95
195*^
U,£c?..59
6, ceo. CO
10,802.38
1955
10.991. ':2
l^.c)91.62
621.20
^,915.63 1,972.80
<,06Z.fA ,',-,■•.-.. U,llr.80
6,322.00
6,000.00
6.00C.X
2b, 220. CO
$ 30,099.7^ $ 56,319.7^ $ 26,220.00
fif)
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No, 110
1481
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or
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1482 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. Ill
•X)
a'-
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No.' 112A
1483
P>«al
UNITED STATES
ANNUAL RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX UNDER SECTION 111 OF THE
t«1ERNAL REVENUE CODE. OR UNDER CORRESPONDING PROVISIONS OF PRIOR REVENUE ACTS
117 »l tiak m tm A€Ht 1*4t) (SmImt ftHn I)
1950
Ftr Cdctdar Tear .
w Fttcal Year Bet—
•■aE>ae<i
MUWT PLAIMLT UMAL NAM! AMB i
J'lrtT CO-JtICJL '28 TOILDINO ;i'.SOCI VTI ^
, 8t»«« nMura o* your
1 Wh»l it th« legkl (ortD of joor org»nii»!ion c<.'rpor»l
trust, unineorporAtcd AAa-'CiAtion, etc 'r?
Ct'rr .rat^ n
J. In vh»t jrear wu your org»i i(»iioi, (<.rn.v<l' K jj-
In wh»t 8t*W or oountr>? ii.ii.-ilt;l I.
S. If lhi» u your fSr»t rftum und»r your prewiit nuiie, indl
wbether (a) c<3mptel^i> nex.- orgftniiftiion Q or (6i
eM*or to pwvimul) «ii«tltn org»nii»tkini»' O If
ecMor to previouily etiMing orgmiuiti.iiiO!. give niut
•nd midnmitt) <rf the predcceoor «rgkniuii«n?i>)
r>> rent* or royntie* trom property wn
i«s*d (rjm the l««e«' . J*? !• I
4, Enter the »|>proxim»te number of membem , if » cooperaiii
or»ioclilit.lder»»t the cloie of the ye«r \Irmb*r» .
Stockholdert: Preferrvd Common
roy»itiM fromj
you h«ve purchased (
property of the orfftriisiion lewed or raot«d to. or dOM
th« orgu>i£*tion t«ue or rent ftnv property from, aJiy
penon or gmupt of peiton* directly Mtoeikted with the
oTMniiMJoa ftliDt thif ratum? ...."?. If either
"^ (Y.OtMl
•rawer 1> "yea," give • detailed •t«t«&ent.
Check whether thw return Wkt prepared on th« OMh j or
aecrukl Q t>wi«
tf you were held eumpt under wctlon 10! (4/, Mate the
total amount of mortgace loan* mad* during the year to
(ai membere, f (it nonmemben. $
If you were heid exempt under lection 101 f6\ «i*te whether
outstanding, \b) the number of sharee held t>> individual*,
(r) the number of sharee held by or(anitat'iun«, and id)
whether any dividends may be paid . .
any of your aotiv Itwi con»i»t»d c
ur othenrlar attempting to influ
If lo, attach detailed sutement
propaganda
Fartuer^' cooperative markceting and purebaaiog organiia-
Uona ahall alao aui*—
(a) Number of iharea et eoting slock ownad by (1) P»o-
(c)
8 Ha.e anv change* nor previa tint \ ri-ported
been mad* m yo-ir ariicie* M p corporatii
or other t-^t rument* of similar import* . .
•o, attach a cop/ of th*- arr.rnjDit'nts
9. Havf v',u fad an'
»«•» t»« »hich 1
Bureau?
If so, attach detailed
marketiOK and OMfchandii
I tor .
Purchanafor t I
Patrooa(e dividends to I t
{d) Value of agricultural products marketed or handled
ftr mtmhtrt lU actually produced by such tuembrn,
t ; (2) purchaaed or otherwise acquired
by such members, t far iwai>untj>«rt (l)
alue of su|)plM-s and equipateui purchased for or sold
to (II membem, t
were producers, ?
1484 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112A — Continued
INCOME. DVKS. CONTKmiTTiONS. I
proprriy ifk^Iudrd usdn
107,567 JiO.
ISITHIN ilf ISCOMK. I>l K.>
n.um. .If m. t •!«< 7 s»f U.l
iTKIBI TIONS. KT(
mn.iia. at.
,* Fu«ljUi*it., .-itjaV, ■■•Ux, .oca*
(rf, tar cofWtr.-CVioo
Oikcr rx^Mn:
JO r)u«i. »*x-»«riii>iil». cW . U) »/Rli«lH (.r|t»iiii«li..ii»
21 (Dinp.'iu.iitit.i, of offirrra, dip«ii>r- tru-iii-, • ic (imi iiirp..tr-.| ij!..)rt ii' n 13"
22 Wagr*. .^lar..-. and romrni*..,.-,, 'nut h,<-Iu<1.^ uri(fc-r iirm M^
24 T»iw
2-. Rftit (n
tii.lrd iji..i*r .lom Id)
jd**d und**r it*m IT)
M inreliartootu rxprn»«« not el«ewh«r* cUiutlfird
» 2),Q7C 10
I 16,71: 17
[ IflfXC 00
12,Cii» loo
C. C«Mr(biili«M
17. Contnbutionn. iiifl*. Knin
p«id i>tAl4t (o wbon pktd) :
• 90 M
D Otkcf (
38 brutti paymrnu to or for mrmbm or their drpradmU:
(«l Iiraih. ■trknrw. hoopttkitntion. diubillty, or pw
(k) OtlK-r benefit*
29 Di>idpD<l( («kn »M >«l n « ic < ttdrnk) uul othor duU-ibutioos to. is«mt>«ni,
)0. <'«iih pairoaa«« divideodo (or t»tnatigK ntuadx) (for ftniHR' soopentivw oai;)
SI. Pstronait* divldfod* (or patrooafr rofunda} in (lock, ooim. arcdit*. « otlwr mMfimw of cquitr <
■ ^ indrtMislims ((or famM>n' eoopnativn only) .
U. Adrtiiionn (If mny) to rorrtc* (»tt»eh it«mii«d »ch»dulri
0M AdditJoni (if uiy) to MirpliM.
, I*.. . Toti o) )t«iM 12 to M. lDClu«tv« («wi IiwtnwUaa T)
JU,217»
71,«Ji
.12»QQ0
» »
00.
j^sir
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112A — Continued
1485
SchMlal* A. lALANCE SHEETS (Sm> iMtrwUaa t)
'T> br romyldcd If pom ••!«« of >mcU It tU.OM w aof
» 17790 7ti ; . ' 1,6UM
33ii?9 111
l<»,5eij,88
»^?52 ho 36025?^
_96Q3J« 72 ?^?a7 63 109^8 > ^ 258,668 82
?V)80 00 23,680 00
329326 77
jyi,T^ 70
12 H.,n.i., iL.I.r
■|grabl(||^^U»lllltt.«
05500 00 — 95,500 00
' _^^4^ 35?" IB ,---
i ^ I
' d)'! BTC'l r«(iit&l if ft truilf 1
IS fjirriP.I ..jr|.l
T..,M ,,<B„,n,, » 99,029 li8 *a$,5od-a)
Srhcdule B. (MINS AND LOSSES FROM SALE OF ASSETS, K!l< l.lDlNr, INVKNTORV ITEMS
^-■- '''-'^^"
l»u»
S"'"'" '' I
i *
nformatieo rvqatred for Schedule B
.ji ij!»ti(>n, or founder, officer*, rtirerto
1486 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112A — Continued
W». tlio under«ifned, pr<«id«nt (or v\ft pretident. or olh«t princlp»l o(Bc«f) kod trsMurer (or MtbUnt tr»Mur«r. or chiaf
v:,,img »cor) of tht organiiitlon for or by which thl» rttum ia m*d«, Mcb for himMlf d«ciar« under the peiuUtlw of puJMtJ
I thin return Kw b««n rtumined by htm uid ia to the beet of hie koowWlge knd belief • true, correct, Mid complete returo
5-l?-?l
["'v.r"]^
The foll.xrinf ed'iillunel decUrctlon
ftftueltv prepannf thU return
I deii»rr under the p*n»ltlee of perjury thai I prepikred IhU return for the orf»nl«»tion(t) cuoad !
le to the >>est of my knowledge end belief • true, correct, (Utd complete returit. y
-11 *r? ?f^
:n,A,socl.tioy,^^^^^;^
OBNEKAL INSTBOCnONH
pom income, receipt*, dtsbur^e-
nicnu, cic. oil thi« font,, is required by lew of nery org»nij»iion
which is exempt from t*x under the provision* of teetion 101 of
the Intem»l Revenue Code, eicepting only k (1) relifioue
orfeniiation exempt under section 101 (6); (2) educetiooAl
orfkniutiou exempt under section 101 (ti, If it normally main-
tains a rvfular faculty and curriculum and normally hae a
re» ilarlv orrsaniied inxiy of pupils or students in attendance at
the placp where u« educational activities arejeguJarty carried &nj
(3) charitable organisatiur. or an orfanlsation for the prevention
of cruelty to children or animals exempt under section 101 (6),
.If supported. In wh<,lc or in part, liy funds contributed by the
United .Sute? or any State or political subdiviaion thereof, or
•innianiy »uppor(«i by cotitrib^itions of the general public; (4i
ontanization exempt umiI't «ertion 101 (fli, if operated, super-
vised, or controll^Kl by or in cf.nnection with a religious organi-
sation exempt under section 101 (ft), i5< fratenial beneBclary
eocieiy. "rder. or aMociatioii solely exempt under section 101 t3i;
or (6; corporation exempt under section 101 (15). if wholly
owned by the I'nited States or any agency or instrumentality
thereof, or a wholly owned subsidiary of such corporation.
2 This form shall be prepared in accordance with the method
of accounting regularly employed In keeping the books of your
organisation.
S Fill in the items on pages 2 and 3 of this form to the extent
that they apply to your organisation.
4. A group return on this form may be filed by a central,
parent, or like organiiatlon for two or more of iu chartered.
aWliaioi, or associated local organitations which (o) are »ubjecl
to its general supervision and exaniination , ib' are exempt from
tax under the same prr^vl^o of revenue law as the central
organisation, (c< have aullkorlaed it in writing to include them in
such return, and (<f) have flied with It statementt. verified under
oath or afl^rmation. of the Information required to he included
in thii return. Huch group return shall be Ir addition to the
separate return of the central organisation, but in lieu of separate
returns by the local organisations included iu the group return.
There shall he attached to such group returo a schedule showing
se(«rately (a) the total number, names, and addreaee* of the
local organitationa included, and (h) the same information for
tboae not Indud-d therein tn addition, if the parent or aay
one afl^liated organisation Included in a group return haa Ineome
of more than SS,0O0 from renu and builnaas aetlvlUes ineludlbl*
under items 8 and 7 of this form there shall be submitted for
such parent and each such affloate (I' a separate statement
showing the information called for in items 9 and 7 and items 12
through It. and (2j a separate balance sheet aa provided in
Schedule A of the return but onlv if the gross value of the aaaeti
of aueh parent or such affiliate is gZSOOO or more.
S. In all en an where item I. 2. 3, or 10 includes money or
property amounting to 13.000 or more, which waa reoelred
directly or indirectly from m« person. In one or more trana-
actions during the year. Itemised echedulas showing the total
amount received from and the name and addreaa of each such
person shall be attached to this ratum. (Tha term "pereoB"
Includes individuals, fiduciaries, partnerthipa, oorporatiofit,
aeeoclitionn and other organisations ) Receipu by a "eentral"
or^niiation fron organisations Included in a group return need
not be iteroiied In the "central' organisatioii'* separate return.
6 If the u->ial of income items fi aid 7 is not more than WOOD.
amount* inrlidihle m item 12 through Item 19 may be entered
under item 21 through item 2* under the appropriate headings
Where sections "A" and "B" must both be («mpleted. Items of
expense may be divided between theee sections on the basis of
accoutiting records, or, if such records tto not provide for thia
division, any items of expense which do not fall wholly under
either of thcae sections may be divided on any reasonable basia.
such aa an approximation of the uae of a f^llity or the time
fpeot by an Individual.
7, If item 34 does not equal item 1 1 , attach a sehadule aeeount-
tng for the difference.
8. The balance sheets. Schedule A, should agree with cba
books of account or any dilfereneea should be reeonetled. All
organiia'iuns reporting to any national. State, municipal, or
other public officer stay submit, in lieu of Schedule A. eopiee of
their balance sheeu prescribed by any nich authority as at the
beginning and end of the taxable year.
(. In all cases where line 0. Schedule A. includea 10 percent or
more of any class of stock of uiy eorporatioo. attach a list show-
ing the name of the corporation, the number of sharae of aaeh
type of stock owned (including information Indicating whether
the slock la voting or nonvoting), and the book value of tits
stock Included in Une 6
10. For further Information i
(f) and 101 of the latenutl Ravaou* Co<le.
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112B
1487
iMH K<fs>r« rural
UNITED STATES
RETURN OF ORGANIZATION EXEMPT FROM TAX UNDER SEQION 111 OF THE
INTERNAL REVENUE CODE (EXCEPT UNDER SUBSEaiON I)
(A* raqulrad un4W Svctlon M (f) •< tK< 1nt.m*l R...nu< C«d«)
fm C«kodar Ymt
' PbaJ Tmt B^iBMic
•nd Endkig
PRINT rLAlMLY LtCAi. NAME AND ADORISS OT THl
DkU c.( llurrkit
1 Ban j<y, Aim] i
F,«^m WO T
tJareiated bu«iii«iw numm inhume r«{»>ri4vt S
t. What ia Um bval rurrii of vaur urnaiuiiitKii
UmA, aninoorporaud aMociatioii, rir iT
•. Hjroa hare «j>ltai .t.«-k iwio.) »n.| <.„i,i»„,)i-,k, ti.t.- wiih
ratfMWt to eat'li rUwu of Mock (a) thr numloir 'f atiano
outslaiKllnK, (b) the number ot m\iMrr» hrld by individuaU.
(e) the numlxjr of •ban* brid by oncaoixattonii, (tf) the
mmber of itnai«b<>l<<pn at end of yoar, aiid (>) whetbw
aay dlvkteiuU uuty Ix- |>&i'l
T. Hav« any rhangra not previoml^ rrporUKl tu thf Burf*
b a aa made in your ariicia> of inrorptjration or bylaws o
oUur InatrumcuU of sltnilar Import* If at
■ttadl a copy of the araradoMuU.
t. Hkv* 70a had an
MM any m
whlehW
uf loeoRM nr M«pNl«i in any
praYknaily bam re(>urtad to the
T If ao, attach
(Y« m No
10. Did you leaur or n-nt any n«l property to or fnmi a perun or
(roups of j«?r«oii« dir<^ily aiMiriated with you'
If ao, atlarb a dii»il««l rtaleinenl.
It. f>id you h<Ai any rvij pruprny for n-ii!iU i«iri«.—. ..fi «liiol,
there w an indkblt^rw*?* iiirurre<J in afi.i'juij.i( ifu- [>ro(K-rly
or In making improtmx'tita iberrlo'
If ao, atlarb drta.l'"l •t.»i<-tiiriit
13. rarmerw* cooperative marlirtina and purcha^nx orfauiaa-
t»onA aiialt aliM> »uite -
(a' Numl.or.rf»h»n-. ..f >.„, , - :,...,
(I. ,,r,>.iM.-. r-
I?' ll-...l.r.»l.ir,T-
(b) U>r^ iiotuncnttx-n* charRed the name m* memiH^nt for
iiiarkrttitg and piirctiajiinii? ...
lYMorNol
(c) Were patninaice dividend! paid to nonmt-nibera on tb*
•ame tjaebs a* to member*?
(To V No)
(d) VaJue of accnculturai f*rTxiuctii mariteted (or handled^
fvr mfmtvn (li acluaiJy prtMlttced by such roemberm,
t : (3> punhaaed or othcrvlae arqiiirvd
by iuch meinb»'n«, $ ; for H»nmrm-
td (I) actually produced by aueh nonmemben,
» ; (2) purchaaed or othrrwiae ac-
quired by euch nonmembei*. $.
(<) Value ol Mippliee and equipment purchaaed for or aold
to (I) menibert, I ; (J) BOBmemben who
were producers, ( ; (t) nonnmnbera
who wera not produeen, t
(J) Amount of buaineee done for Unitad Stataa Qovaremaat
1488 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 112B — Continued
^ 4^ INCOME. DIES. CONTRIBITIONS. ETC.
1. DuM, tauwiiM-nU. etc., from m«nbrr<, ricludiog wrvicr and oth' •
item 7 («ec liulnictiun $)
. includrd under
P4
$
0(3
3 . - : ■ •
7. GrD« rereipu (rom 5««me«. ac.ivUi« ci.t^ .,»■ r,
(«)
8. P.lr«..av - - . „ - -
9. Gain (ot Iwmy fruni »l<- of te>rt>. rx.iudmg iovenlorjf iu-UM (MK IiMlfucUon >0j
10. Other inronw (if more than 10 peroeot of item II. attach it«mii«d erhKlule. Abo iM Ittatruction 5) .
11 Total of itriiK 1 to 10 iiirlnsive
KISPOSITION (It IS( OMK. IIIKS, I OSTRIlil l ~
A. Eiprnspa allribullbJc lo income ilrmo 6 ind 7 See InMruction « :
13 ' r • 1 • f Si d- I ICM et ' '
U W lui.s, saiari. .. and oommiMiona (other Ihan eorapenaaUon of offieen, directort, trmt«». . ■ <
16 Tn.-i • ..■•'■
17 RmiI
19 M..«.
B. Other eip.
22 Wages salarin and conimUsions (not included under itam 14)
(a) ..i^-^. .
W
a C«»Wh.tla»i:
7J. Contribution*, ipft-'<. (irant., etc pn.j ;..(att to whom paidl :
M
<c)
(i) . . i
m
J8. Benefit paymenU to or for n»-nibeT« or their dependeritii:
(8) Death, KCkneM, hof^Mtallation, dbaWUtj. or pen»ion benefit........ _
m
». EMvldenda (*m ku r*»ff ««*•*) and other distribution* to tnembera, ehareholdem, or depoaitor...
j
»;. Patronage dlrldenda (or patrona^ refund*) in •toek, notes, erediu. or other eridence of equity or
S3. Additlona to reeerve* (attach iUraiied »chedBJe) _
—
—
»i. ■ Total of Item* IJ to 38, Induahr. («•• Iintructlon 7) _....
1 »..„^: ^.^. .!_..„
IMPROPER ACTIVITIES IN THE LABOR FIELD 1489
Exhibit No. 112B — Continued
-BALANCE SHEETS (Sm luiracUwi •)
■»««■»
ASSETS
*°"'*'
.1 AacOBi
Tout
'f^ -
>».
ti.:^..:. -.;.
«/7//.'
• ;•■-
~"
Urn: Rnrrvr fur liaj drtxo
S. Iovenlori»»
..;'.'.. .-■
4. iDvertmriils ID guvrrnmriiial obli|i;*tion«
8. rDva<tm>oU in eorpontr stoclu (mh- I
7. Other iovminirnu (iUrmite)
LIAIIII.n IK."
11. AeoounU pavkhle
IX Bonds, ootPtt, And mortKAxra pa>-sMf
(a) With original maturity of lev« t
(6) With oriKinai maturity of I yt.>«
IS. Other Uabiliti*^ (iicmijr)
M Total liaiilitibs
NKT WORTH
16. Capital Stuck:
(a) Preferred Stork
(b) Common Stock
16. Mfmben»hip certificate*
17. Paid-in or cafiitaJ Aurplu^ ^or douMtr*! rapt
18. Surplua mer\'M (itemiic;
'jHEJgHjy
led mirplus and undivided pruf)t.«
Total vct wouth
Total UAkitrriKS and nkt w
1490 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112C
UNITED STATES
RETURN OF ORGANIZATION EXEMPT FROM TAX UNDER SEQION 181 OF THE
INTERNAL REVENUE CODE (EXCEPT UNDER SUBSECTIONS (6) AND (12))
{A» rvquirad und«r SacUon M (f) of th« internal Rvrenu* Oxie)
For Cakndv Yew
or FiKal Year Besinninii
■^c^i,f.,„:JJ;r.
nlxkkktotonM^
, «nd Endins
«.ND ADDRtSS Of THr
yJ.Y
t vtMi havr* cApitAl ninek iwiKHJ Ann oilt>1&ri<1inK. tttat« with
nxiprct to rsrh clan of atock (a) thr number of than*
ouiatAndinK, ih) lUe nutnticr of »hAr«<» hfld by todividuals,
(-•> ?hf n-imtvr "f .h«rt-« hrW bv or(t»niMlioti». (</> tlw
S W>»t in the 1»«»1 forro of yoitr organiMtn
bo».'n m»de in your «
other in«tnjnM»nt« of Mtmiar mipor
Atlach a copy of the ameodmeQU.
I 10 Hsve v.H, h»-l
8 Acfouiilinn method o««i:
(gr'Ctktb or O AecrujJ
0. If pxf mpt under section 101 (11
ina^t*' (lurinft the y*-ar to
to prerio<uly cziatin
od •ddrmfoi) of
13 DW you hoUJ ».-iy rrnl [,ro{»
ther»is ai: i
Hal purp.CT« on whidt
IMPROPER ACTIVITIES IN THE LABOR FIELD 1491
Exhibit No. 112C — Continued
(«
t. Otin (or loa) rrom Mi« <rf xwrU, atdudin* lowntory itcoM (aw InatrvMUuti <Jj
•. Olhw laoom* (U mart thu tO pw«Mit al lum 10, kUach llMBlMd Kbadul*. AUu
I& Total of iuna 1 to 9. iMlialn
DUrOSITION or INCOMS. dies. CONTBlBCnONS. m:
ia«u4T(Mtl
Odtu^iinALL'ti) of ufhrers, dtrrcto
M property, Iimodw, aonal mcu
It. T>
It. RhK.
17. Ot(MMlMkA (utd dcpleiioo)
Bl 0<l«r •t9u-m:
It. DoM, ■iwnnnto, Mc., to •flUsted ofsuiiutWna
W. Compwi— tiop o< ofllnn, dirsctora, tnutM*, etc (not Inrlixk^) uixlpr ium 12
tl. WacM, laiwioa, »n<l o«Hnini«iooi (not ladude<l under ium 13)
tS. iManat (not included uoder Item It).
I '5- ^>
M. R«it (oot ineladed oader Item IS)
[UuMotu expeiMM n
eUtfHificd (BtAle DtAtu
r.^-'
«. CootHbutJoo., «tfU. cnmU. •<« , pitid (.l*U to whom pftld)
c«)
(»>
(«) .
M)
tl. BaMtt p*rmeoU to or (or memben or their depradrDU:
(•) Death, ■tekoeei. hoipitalltttioo. dl.«bnity, or |*r..k>., lK...rfiu.
(k) Other beeeCu
9. IMv<<leiid. »nd other dtatrlbutloo. to member., .ha/, -
». Addition* to reeerve. (attach itemlied .ehedute)
n. AxMitlou to surplue
«1. Totalofltwoell tolO. iaelwlT*(«aeIutTuctloD7)
...^.3.oi'
^«
•/JTS-i?/
«-
"""
1492 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112C — Continued
A^BAt^NCE SHEETS (Se« U«tni«<)<M «)
: ^.,-..^.r — -
lTOutY.1.
ASSETS
ASMU
Toi»l
.. C-h
,.*;^w Ki
»J /./.: L£
./08/. L-.
$•>.?•■'</?
Lm: Htmrrt tor b*d d«btt.
./.'/..9l!^.. ^-n'
■
j
(•) D«prMiabto (u»l dcplotabki) M«eU (ttuefa
lUmlwd K>hedal«)
liH*: lUwnre for dspreciHion (»nd depleUnn)
(k) Uad.-
•l (Mm MM^ (it«a...r
s
i
;)6 1
1.
4.5-
M. Tor*t ««rr»
UABILITIE8
IX Boodi^ boUm. »nd n>ort«a«<" P«J«We:
(■) With origin*! msturity of lea* Ihui 1 jfr .
1
^
1 .
: _
U. (Mar UidbiHtira (itrmUr)
H. TotaI UIAB.UTIM
NET WORTH
U. Cttttl»oek:
.al^--^
ou
•b^
(*) C!ommoo Stock.
1
1
t
1
tl. Evncd turplu* mm! ondivkM proAu
! -
1
t
t 1
It. TOTAI. tUJirLRtU AMD KTWT WOWH.
»
» -,i -
W«, tb* onderticBed, prwUtont (or viM praadaat, or otiier principal officer) and tr««(urer (or Msat
•Moantint oOoer) of tlw ortanintiss for or by whkb tU* rHum u made, each for himaeU deelam under the penaltiet <^ perjurjr
that thia ntim haa beoi azamiiMd bjr him and to to the beat of Us knowtedge and betief a true, correct, and compleU) return.
The foltowiBt
>C additknal dedaratkm ihall ba aneated
Lg tbia ratnn:
dar tbe paoaltiea o/ perjury that I p>
By koovledce and beUaf a true, eocn
by the pemn otiter than as ofileer or employaa of tbe orgaBitatioB
I declare undw tbe paoaltiea of perjury that I prepared thto ratun for tbe attanliatioaM aaaed beraia aad tbat *hit retar*
k to tba beet of ny koovledce and beUaf a true, eorraet, and complete rHui*.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1493
Exhibit No. 112D
• t«T DtPikTMINT
UNITED STATES
RETURN OF ORGANIZATION EXEMPT FROM TAX UNDER SECTION 101 OF THE
INTERNAL REVENUE CODE (EXCEPT UNDER SUBSEaiONS (6) AND (12))
(A. ra<)utr«d und«T S«^««.n U (f) oJ th« lnt»m.l R.xnu* Cod.)
For CakiKUr Yew _ -<
1 ISutt* tulUirf of »rli'
' «i>A/.-<I.Tt.rH*r!«'.t...<?..f
1 8kv« yoti fUeci a tu rrturu uu Form MO-T (or thw t'w'
„ If >o, when Uedr
(Ymo nm
UimilkUd bosiBSM gran tneoote rc|iort«l, t
t. What ll Umi IrfftI form of your OfsulMlion (rarpantiMi.
tmat, tiBineorpantad M«ad»(ioD. pU.iT
CiT. v'.'i/ *..."> 1 ,>/• „ _..
4. In what jTMkr wM ywir oric»"iM'><i' '"■""'l^ f-iS-S-
InwhM SU(« or RHiKtrir? ,..
8. If jrou h»w c«pli*l .tix-k i..iw.i
m>|irrt lo mm h rbi»« «f -im I
/aoa<^ Oft!^M.jl*;X, ouli>l«iii)in«. (At Ih- i>iinil«T I.
*«.«*.V .^^e^A/a^i.^ ,^) ,,^ nurnl-T of .li«r«. hrl
numt>rr of •hjifTKf>ii>rs %\ fv,
Uwi or o«hrr ihrtnifwi.l" of winilar iinfKH-t '
If to, UUrh « Dlpy ()f llic- «m.-i.clniri.l» in il
B^CmIi sr O Aecnwl
6. 11 exempt under aKtlon 101 (U) nof nunc and »Mnm nf
OfDuiimtion ((«• which r"il hoU tilk- In (>rO|>rrt j
T. tf jroB •>• w»«« w« > f to prevkNuir eiutloc ara»BiaUier.<»),
l^v« nM»*(t) asd *d<lr«w(«i) of tiw predvccoor
(&J aofirtifint>**rii. I
12, Did you lease or rent my n»l |.r.>iH-rl.v lo ■» from * pervon or
group* of per«»nn (ijrrrtly »*««'i*t«l with you? ,. ,
If to, attach a dftailcd •laiciiMiii in duplicate.
1494 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112D— Continued
WOOME, DIES. CONTRIB'mONS, ETC,
I properly iurltjdr^i under
6 llei.i.
7. Gru«« receipt* from tMisiiicM
(a) .
8 r,»iii (or low - . \dii.!u.K Min-;it..r
» Other li.r..:,,. - ■ ■ '. :•,- 10 »lt,
10 Tot»^
I i^ 1S< ii.MK. Dl K>
A. Kv^ftse* itttribatftblv tu intrumr U«m» ft ind 7 :9ee InMti
<TR1I11T|()N,S. KT(
S-'i/^
13 \\n-
M lit-
is T»ie.
16 Rent
17. Deprec
18. MUcelluie<iu»
"ellMieoiis r\^y,M-^ -thW r.ntiire);
% /7 5.£ si.«A
.^.^-, -Z^.f«:.jut MCWTJ, Aift^Titr.^/Jc/^^ii.^ '-
B. OtlMW ei|>eo.ei.
19
n.ie., IU««.-:
20
rom(ieriamt i. .
»h<.»in«t i.f
31
V.„f~ ■■■■-■
n
I,,!.
23
T..
24
Rei,'.
25
Mucellaneo .
./:^.z«
c ^j^.
C. rMtrlbiUoiu:
2fl. C'ont^bution^.
(rf)
D. Other
37. B<
»
payment* to or for memtxrs or their dc)<-hdpiit.i: !
(a) I)e»th, sicknera, ho»pit«li«»tion, dwaiaUy. or (*iiji.ir l-enpfitd "'
W\ Other benefit*.
38. Dividends and other distributions to members, sharvhuMt-r*, or di'iwjrtiior' |
39 Addition* to resen-ea tattaeh it«ml»ed schedule)
10. .Additions to aurpliM. ' —^ -— ,~^/
•1. Tatelo(it«nult to«0. iDduilT«(lMliwtruction7) „ _ j $ f ..^J- fr'l.rl *
IMPROPER ACTIVITIES IN THE LABOR FIELD 1495
Exhibit No. 112D — Continued
«dh*M* A.— BALANCI SHCm (Sm UatradiM «)
ISSKTS
l-niTi-
TMI
Amaou
TaM
1 CaA
$/fliJ/..
./.z.
YZ
» 7 y>z
ti
^f
2. Note and »e«junt. r«.i%»ble _..
^"
». iDventorie.
t
1
7. Other inveslmenU lilrroiw) . .
1
«. C«piUl umfU:
(o) Drprfo»l.lp larM iVpl.-shl. ».„.. „!i»ch
it.T,,
8. Olbfr t-^l- 1-
1 !
10. T.u*,. A.-...,
LIAHIIITIKS
»
fiii"— V
* *
12. IJonii), Dolm. «[,<) TimrtgmgK. (uiysble:
(a) With on«in»l m»turity (rf Ims lh»n 1 ynr .
(t.) Wiih oriKiial maturity of 1 year or more
IS. Other Uablliii^ '>i.-mi>i-
1
1
14. Total i,i.n«ilitim
NET Wl.HTH
15. C.pit.1 Stock:
(a) PrefrrrH Sl«ck
(») Common Stork
»
»^i/^
•t
17. Paid-in or capital curpl^i- -r ao,,»i.-.i ra[.,i.,: if.r,,,.,
18, Surplun re«n<- .!■■, ./.
. i
1
-
t
19. fjir.i«1 -iri.li.^ ai..| u^l. •, ,.!..! priM-
20 Tl.I.»I V.CT .oRT„
21, T...T., >,,vH,.,T,r. ..., srr v, :...,
—
it^-i^ifftii^^tn^X^.
>K( LARATION. (See InatrofltoB II)
' jt? I M.. prfi»arr<1 thw rviurn for thr orftani
r^
/^^"
O — 57 — pt. 4-
1496 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112E
KTW IF OMMIZATWI DKCMO ■ «BCTM SM (t)
[|m TliM SVtSCCTION 3] OBPT FMI UX INKI
»1M S81 (a) Of THE MTIMM. KVDIK COIE aniS4
aT»|D»o
WWii li b> '.•gnJ iorai d r*" "■»>"
SCl Co* CJ Aocixjo; G CNi>»t
wK,a, ra. Wd rui» fc lir^l^rn
"^'^ «t WBT7 wm
(1) IMi br injtnduok. . .l_.
O) U.ki bl organi-.lla«. [_
Total ibarw ouMondbig. . i_.
Numbw •tocihoUm at Ml d I*
(1)
Kov* ony chongaa Dot pr«TK^i^; rac<)rt«ci
to Am InlKtial Kirwiu* SkyIo* bam mod*
ta joui atiicim ct mccrporotton or biki«
voltwr mirtnin>«vt>al ilmilar Imparl?. . D Tm
II. Hen» JDU hod ntiT irura*! ol tnoCTn* or «
go4«l In OBIT Qc»l»i»l»« which ha»» no!
pr«vlo»M)T b«»n rBportod 1.. lh» latamni
It. B TOM ar» lh« Itp» o/ onjanliottar cW(KT(b«l
ki MdKw SOI (oi (7) ihcw qrvaa raos^
and o<h« tnoan* cr, poo* 2 i»a 7 or 9
b. Othm
11. Did 70U toax or r«Dl any r«ai pfnp»T«r m or
oMociatKl wuh T«i' C] Ti
!« '•¥•*'■ otfcK* (l«killed rtatotaMl indnahoot*.
I*. Old rou hold our t»al pro(j«+r 'of f«*J
xhlch thRV b an IndsbM-
i lncwrT«d tn ocqvurina Dm SX^vTr
■-^1
B "Tm^" aHoA datoilad italamMrflnd^villoal*.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1497
Exhibit No. 112E— Continued
lEB. CONTRIB'JnONS t-T-:
I. IXiM. ommmBomtB, dr.. twin amtnlmn, «scU)^' . • ■ '
ttecn 7 ;«fw butrvctlnn 7) . . .
S. Contribution*. 0lh«. Qrant" ■
4. Ir.kmft.
I. I>.yM»n.i»
1. I.'..-.-,
:-OMr DUEB, CONTRlBimoNS. f!XX
... Ir
(AthuK slaMnkAr)* ahowjng :
B. OUvw upuuM
M . ,« . . r .<! V.„».T -» LT . .-
ncim* pc«itkon, MiiaxT, ond tun* davuU<i u> ixvhJu)
11. V..,<k> K. Ilea cr. a n,u..u- tJ i-^ ii.Mr i*<<.
tt. rl>nW T.^ .lo. <
H. --."•( K -...„» «.
». Vo-i (TT 1-t -laii L-kiK il»r >
' Huutmm 1064 13
:./i;
n. B..VJ-
1498 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112E — Continued
SchtduU iL—BAUiMCX SHiXTS .8m l>ubu<:bon 8.
"^ I ^^y"**' -'--^ •■^''
i, lai— >i*i t il fn s^wf^ttw-"'
U2Sn 70
E3iC8«da previous total by $C-O,000 becaasw of
•jTari-aaaly unrec.rdea ht>ceiva ^ss.
U. CHhwIkJoUKwOtiinlM) ^. .. %
^ U90aBO0
'
t«. Total IkifatIRM
METWOKni
II. CopUai Sk<x.
(a) Pii*»i»rt Sto.:i ... «
^J^*^^..
I^UOT OU
U. PalQ-m or cur*'''' tulviuM (ur 'ijn.jtud oojj'^- ': > 'r'l"*-'
•
!«. Eomwi lunriM. and wua,n.i« .—uu
a. Total n»l »-orth 1 1
^SS^
BUJHAtm MMD VUUFIOkTIOII CSm Inafauctloct 1 1)
t lta» ODdamtp-md. pioklert. no n w l i ni ^ tmcuum, oMlKani tnoiivx. cliM aocounOag oiiic«r i .
d lb* oiToniiuttoo lor whic^ \hu rdum Ib mods <i«ckii« und«r th« paoalttM o^ parlurr tttot thu raturi
rV*-'— and •kdaoMiiii, h.j< bwni aonu-.aci br ox and la. to Ifa* baa o< idt kaowtad^i and b*li*l. a tr\.a t » . i ..u
wad* tc 9Qod bhh. for Am kiuibU y«or Mal«4 punuoni to &• Intoma] kvncu* CO60 onJ tb« ivgulo'...^.^ is.^.v^ ;ii*.t^ ^ k
■f«r Ub XlfS Pr««idMit
uadar tfoA panola— <d p*rtui7 fbot I (»-«puj«d thij rvturn tor th« p«rtac narnvd
■ciMduiM and ftotMnmta) U. to «m bMt oi bit kiwwM^* o«i ^«1m!. o ^«
t r«kiting to tb* nottan r«7ulr«d to b* mported tn ttUi rvnirn ol wbtch 1 how
.'-]
IMPROPER ACTIVITIES IN THE LABOR FIELD 1499
Exhibit No. 112F
KHM if 086MIIZATMN OCSCMO M SfCTION 511 (f)
Itrm TIM SVISCCTIM }) EXQffT HNW TAX VmS
Sttiw sii (I) OF TK mvm, taam emmym
1*1 ^ « »i •»
7I5T
^ PICASE TtTC OK PUNT PUUMLT
Z7^ '^ —f^^
L Ra«« rou Hted « lex rtitan «n Fwm 990 T
kirthliraar? 'JY« (No
B"T»- wW^MkT? . ...
U^«ritaM biMM» TO* man. rtiportod S
t. W«w a r<n 990 UkI tor th* praoKJtng fwor? f^ 1m G No
4» ¥0x11 to tlM kgoi icno al rut orqoniunon
>. In «hal TMT wb rB<» u n ja t Ufci Mwi tontwd? Xf)^
b> •Hot Stoli or oounlTT? %A^glM^
•. KexxuHtaq m^ed mad ' f^ Ca«h U Accrua: O OOw
It ettmr ■■thcri uwd. atJotB
(. TW book* an in uom oI
(I) HaUby
C» iWdbr
(c) 0«»f
In rour orttclaa d Inotsporatten or '
U Ym. atlaolt o oapt <* th* '
LSiSr" O T« IP Ita
ci Toki* not mduded In n —p W M uU o n _V ^A*
r«|»Mc«IUMl3ar3I,pa«»27 O T« g| Ho
I... • iv
(a) A8Uki<«J onjonltaaani.
(d) 0*w rwpaM
M. Ko^M TO* had aoT •ourco* al i
goijKl m anr ucdTWaa wUoh ho** lot
Br»<naualr bwi raportad l» *• hrhrnoi ^
krwMio Sorrtoo? Q To. g] Mo
I "T«^" oHoati datallad datMMOt tn clup'>-
w tn» at crqanmllaD 4MBdb«l
I SOI (c) (7). alio* wm limkm
' taaaao on pogo }. l>«o> • or W
U. Hjom on ttm*jp» alt
a. Momhort ocd Ititr quottt
b. OAw.
M, Dtd rou looM or rant oar >
D To. a Mo
H' Tw.' attaoti dotoHod il o to i i wu t la <
|-Y«i."a«ocfa(M(itUcl
Ihara !• on iriiobl^
1500 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112F— Continued
I. Ojm. •■,-.■
t. Do*
i. Contnbuttoni. qil
4. Pciym«rt« racMve
(a) From <irr.l
INCOME DUES COMTRIBUTICMIS ETC
1. DtVKJMdl
»•. Clh»r,r,r.>n-|«(>in,c;»'h,,;- , p^r*.
11. T-,i.j; '•( i,r.w , .:, ,:: ,-i<..:;>.,ve
D'SPOSITION or INCOME. DUES. CONTRIBUT70M8. ETC
A EipntaM attributobl* to incom* Una* 7 aiui 8 (*w liutructisn 6):
IJ. ^r ,"iei\fl^itiv'^r -! iliirp-* di:**r' -v i-;^?***- ^'m (Attach atataimaiit Bho«rin9 nam* po»]
and rtfn* imvoHmA Vo ooauvnn^
II. irJomi!
II. T-1.M (.ueh as t.r- i.c. , ... , „,. .:,t.,l.-,,n,fr;i :.;,«> etc ,
17. S—.!
II. C*rr.— >•:-, HdJ depletKrv
1». Mia.^ :-.»- ..,.Xi<.n.-«.(Stol.natur.).
19
UfcTfT >
ITM*-
U.96# f
lf,3)t It
Zl. >.x»r.p»n»nf!on of Tftlo^rt .rJir^ tdi-s ir\
nam*, poailton. aaloir. and tim*
tl. Wo<j»8, »aion«», and nommijs.on! 'r:wi ,nclijd«d .»•. Um
U. Intwwt (not incUxUd on lin« 1 "=,;
M. TatM :not Includeiton Una .6)
n. R«nt inui Indutted on hn» i 7)
It. Mi»o»ilaneou« •xpenam tiol «i»ew>i«r« iawifiwi (Stol*
(ban*«» tkUr, raA. UW«, TvUplMW
C Contilbutlena:
17. Contrltiuticrn. gilts, <jrants, wc , F«id C3*»*» to whom paid):
a9,Jt7 1»
-i,S6 1 JM« ^>
O. OttMcawpcwittona:
M. B«rtHiT payn.<*nlt i
tbi
yr msmbers - - th^ir d9p*n<i«nts
haspitoli2cit)£>n. or diaabiUtr bi
n. Divid«nd« and o«her dnhol-ij
M.
».
i (Attiich itamlMd •c>iaduU)
irtton 71
k
jkjm-
t
IMPROPER ACTIVITIES IN THE LABOR FIELD 1501
Exhibit No. 112F — Continued
SchMiui. A. hAuoKx macr* (Bm in«tiuc«<»i •>
, ,j, .1 — r. »v.!i -hhq.itictih
<Xrx» r.;'e 9<« tj («•• IrjtruCHon *
•■ • ntMtuM)
lk,00»M.
ihle .«.,••. (Attach
il»m»»«<i »ch»<jvj
1.
.■-.,^, :«-.,
(lt.m>«.)
t.
«•»**•
LIAElLITIiS
a.
■ *V I-
,r-..j'>- -. -.1 V:.U-V n V. '
i.
- 'ht- i^.i-.i,
ti«. (ItMmM)
vitUMUii« TuM riTifciii
!iflu-:.g^feiaksj-ft-'^if
1*. Mervt»*l|. wIUk- ;»■
17. ! J ■--, ir. r r opiloi •nrp.lgl vor •li'T^otda
21. - T.-fnl llooiim.. iivi not ■*.•
SIGNATURE AND VEKinCATION (8« InXruetlon 11)
.; (•!- ... ■■ .;! 'hu r»i:.r!i ' : '. -iu.l!r,.) .iny irw»n,jr.yit^ vvhiwiuiw arid
•tatanwn'e) ha> baaii •xomiraxJ
r.pQnr>B<J »rh».! . -
'. w.
"-'^^^
rod tht« r»tu-n to.- »i« F»rK n
(i4 mr knc'wlodQK oi.d b»;i»i, -
rn ol whi.-h 1
("ne(n onJ thot thu r»tum (mrludirvg onj
••■tinrt, and co«rpi*l» rWum fao»«d <.-n oil
my knowtod^.
1502 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 112F— Continued
)r -»-ltVr wht->- I I -IB,,. .
'J. 3..> «,r.(«s to tk 9«»^ j ^^ ,,,,^ l«Ki^i^
«««:,<« Irsxr tai UKIM *• j „^.^ ^., ,^,„,cSr^i srw) ^ boo* wsio*
»ni«ii ircKinnertttm, (c) h iv» j ,..^ ^
indw 00* oc aii'rmation .: - ■
» «a». -gwrv ,
IMPROPER ACTIVITIES IN THE LABOR FIELD 1503
Exhibit No. 113
o
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o
u <u
1 1
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o
P, :3
o
<D
o
-p xi
a o
vj"
:3 w
OJ
o u
^^
-er>
o
i/\
o
ir\
• 1
1 •
o
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1504 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 114
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1505
Exhibit No. 115
iroTiTRN CCNFZPtNCi:: OF It AMoTFi-.S
Balance bala:ice Balanct- Balanct-
Name Jan. 1, 19 5-i Jec. 31, l'^54 Dec. 31, 1V5>5 Dec. 31. \^>i .
F. ' . Brev-bter 5 -- $3f,,735.00 $ oO.ObS.OO $ 77. ;,■,!..
John J. S^».oonc^.■ -- 30. 175.1.0 2o.075.CO Z6,-lib.C\
Joint Council #7
(jan Francisco) -- -- ZC.CCO.CO ^Q.CCC.'f
Ann Kotin -- .- 1,C0C.C(
Mrs. K. Campbell -- -- ''9.<'-
Joint Council ,=*42--
.-.pfcial Fund (Lot,
.••■nRclos) -- .- ...
Joint Council «23--
Bld^. Association
(Seattle) 94.500.00 9<,500.G '., !
Jcint Council I'ZS
(jea-.llo) lb, 000. 00 IS.Cf^.^ ;S,i..U. .. ... ,.
Local e.7
(Bakersficld) ZZ.OCC.OO 1 ,- . i ' U , 5 r . (. o IC. ■:(;_. i
Joint Council v37
(Portland) 10,000. 00 - - -. i
K. . ciha\s Z.A'.l.'"-! J .; v., ^,i-:.l\ ^.\\.Si
ilctiremcnt Tiust
Fund »2 •■■■, 5-.^. 7 i - ., -,. ;. . , j
\i. r . Galianar
ivlartin VoUougli 360.00 3t.O. 00
P. Pearson -- .- ■
Local =^566
(;oattle)
Local •♦ZSl
(Portland) -- .. 2,000.00 2.(!..0.t;o
Local MSO
(Billings, \.ont. ) -- -- .. z.
Local ff381
(5ar Luis Obispo) -- -. 21,000.00 12, 600. CO
Local i»94
(Visaha) .- ^ .. 5,000.00
Local "20b
(Portland) .. .- 5,000.00 5. 000. CO
Ldward \ ood^4ard -- -- -- 1.2i0.0(.
B. I. Bowcn -- 3.925.00 2,387.15 * 1,712.15
Peter Diandrc -- 3.925.0C 2,625.00 * 1,725.00
Nugent La.^oma -- 3.925.00 2,874.51
Mrs. Marjorie Lindsoy -- 3,925.00
George C. Ne\fccll -- 7, 850. CO
1506 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 115 — Continued
Palnnce
Jrin. 1, 195^
Lion
Balance Pnlancc Balance
Dec. ?1, 195^ Ice. M, 1935 Dec. 31. 19*3^
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•53,251.95 "TIS^OToTTO
IMPROPER ACTIVITIES IN THE LABOR FIELD 1507
Exhibit No. 116A
WESTERN CONFERENCE OF TEAMSTERS
RETIREMENT TRUST FUND NO. 1
NAME
Joint Council #2,
Investment & Construction
Association, Inc
F. W. Breveter.
Local 631, Clark and Lincoln
Counties, Nevada
Jack Esterbrook
Western Conference of Teamsters
Local 982, Falmdale and
vicini-^.y, California - - 2U,000
Joint Council jtl, San Francisco,
California - - 90,000
Fred Verschueren, Jr. ($lJ+,C00). - - 13,3^0
Local 890, Monterey County,
California - - 7,500
George Purvis ($3,500) - - 3> 350
TOTAL $ 205,750 $ 128,000 $ 415, 590
Balance
Dec. 31,
1954
Balance
Dec. 31,
1955
Balance
Dec. 31,
1956
$ 200,000
$ -
$ -
5,750
-
10,000
-
20,000
15,700
-
8,000
6,700
-
10,000
2U5,000
1508 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 116B
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